Starbucks opening 1st corporate office for tech jobs in India
What's the story
Starbucks is setting up its first corporate technology office in India. The move comes as part of a larger plan to save $2 billion by bringing outsourced roles back in-house and cutting costs. The new hub is expected to start operations in the company's fiscal year 2027, which begins in October.
Job transition
Bringing outsourced roles back in-house
Starbucks's Chief Technology Officer Anand Varadarajan has confirmed the company's plan to establish a new office in India. The facility will be used to bring some outsourced roles back in-house, which were earlier handled by third-party contractors. This is part of a larger effort by Starbucks to "reducing reliance on external service providers" and create a multi-site structure for its operations.
Cost-cutting measures
Avoiding markup charges from 3rd-party providers
Varadarajan has also highlighted that third-party technology providers charge a markup, which Starbucks wants to avoid. The company currently works with tech providers in several countries, including India. The main aim of bringing these roles back in-house is to "build closer connection to the work and the teams delivering it," a spokesperson for Starbucks said.
Workforce changes
Restructuring and job cuts at Starbucks
Last month, Starbucks had announced that 270 tech roles or about 20% of its tech workforce would be moved to a new office in Nashville. The company has also laid off some of its tech workers as part of this restructuring process. Since February last year, Starbucks has cut more than 2,000 jobs including 300 this week alone.