Starbucks Resumes Layoffs, Technology Division Targeted

A wave of layoffs is once again striking global companies. This time, the world’s coffee giant Starbucks is reported to be cutting a number of employees in its technology division as part of the organisational restructuring currently underway at the company.

This step is being taken amid Starbucks’ major efforts to overhaul its business under the leadership of new CEO Brian Niccol, who joined in 2024 to tackle slowing sales, profit pressures, and various operational issues in stores.

According to an internal company report seen by The Seattle Times, Starbucks has begun notifying the affected employees of the layoffs this week. Previously, rumours about this workforce reduction had been circulating for several days.

The company has not officially disclosed the number of workers affected by the layoffs or whether the cuts will focus on Seattle. However, Starbucks has affirmed that the step is part of broader efforts to reorganise operations and ensure resources are allocated to the most needed areas.

“We are making structural changes to move faster, sharpen our focus, and ensure we are positioned to execute our most important priorities,” the company wrote in the internal memo, as quoted from the Times of India on Friday, 24 April 2026.

Starbucks also clarified that these layoffs are not related to plans to relocate some technology jobs from Seattle to a new office in Nashville, Tennessee.

“These layoffs are not part of the plan to relocate some technology jobs from Seattle to the new office in Nashville,” the company stated in the report.

The new office is estimated to accommodate up to 2,000 jobs gradually. This restructuring is part of the business transformation strategy being implemented by Brian Niccol since taking the helm of the company.

Starbucks is currently working on a turnaround after facing sales and profitability pressures in recent years. In addition to updating store operations and expanding into new markets, the company is also carrying out cost-efficiency measures across various business lines.

In December 2025, Starbucks appointed Anand Varadarajan as Chief Technology Officer (CTO). Previously, Anand spent nearly two decades at Amazon and led the company’s global grocery business.