Starbucks (SBUX, Financial) is set to outsource some of its technology roles as part of a strategic shift. Chief Technology Officer Deb Hall Lefevre revealed in a memo that the company is rebalancing its mix of internal and outsourced talent. The goal is to reassign full-time employees to crucial projects while leveraging the speed and flexibility of service providers.
The company has not disclosed the number of positions to be outsourced or the third-party suppliers involved. A core internal tech team will remain, with external talent handling more routine tasks. The memo indicates a broader restructuring of the tech team, affecting data analytics, engineering, and other functions.
In a bid to reverse declining sales, Starbucks announced the elimination of 1,100 jobs and a 30% reduction in its menu offerings. This marks the company's first layoffs since 2018. CEO Brian Niccol stated that the changes aim to enhance efficiency and reduce complexity. The layoffs include 1,100 filled positions and several hundred vacancies, as Niccol seeks to streamline operations and improve accountability.
The adjustments come as Starbucks faces financial pressure. For the first quarter of fiscal year 2025, ending December 29, 2024, the company reported revenue of $9.398 billion, a slight 0.3% decrease year-over-year, and a net profit of $781 million, down 23.8% from the previous year.
