Starbucks is planning to open its first corporate technology office in India as part of its efforts to reduce costs and improve operations. The company wants to cut about $2 billion in expenses.
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The new office is expected to open in Starbucks’ fiscal year 2027, which begins in October 2026, according to a Bloomberg report.
The company plans to start hiring after it finalises the location later this year, according to a message sent to employees and cited in the report.
Will Starbucks Automate Using AI & Have Fewer Staff In Stores? CEO Brian Niccol AnswersThe India office will become Starbucks’ first corporate office in the country. The company currently operates in India through Tata Starbucks, its joint venture with the Tata Group.
Starbucks wants to bring some technology-related jobs back in-house instead of relying on third-party contractors.
These jobs had earlier been outsourced during a previous restructuring process.
Chief Technology Officer Anand Varadarajan said the company wants to reduce its dependence on external service providers.
He said creating a multi-location technology structure is an important step towards achieving that goal.
This Is How Multinational Coffeehouse Chain Starbucks Lost Lawsuit Against Pakistani Twin, 'Sattar Buksh'Varadarajan had earlier said that third-party technology providers charge additional costs, and Starbucks wants to remove that extra layer by handling more work internally.
The company already works with technology service providers in several countries, including India.
Starbucks said bringing these roles in-house would help build a closer connection between employees and the work being done.
Last month, Starbucks said around 270 technology roles, or nearly 20 percent of its technology workforce, would move to a new office in Nashville, Tennessee.
The company has also laid off some technology workers recently.
Starbucks has cut more than 2,000 jobs since February last year, including another 300 layoffs announced this week as part of its broader restructuring and cost-cutting strategy.