Starbucks is planning to open a new technology office in India as the company aims to reduce nearly $2 billion in costs. The coffee chain wants to strengthen its technology operations while cutting dependence on outside service providers.
According to a report by Bloomberg News, the new office is expected to open in the company’s fiscal year 2027, which begins in October. This will be Starbucks’ first corporate office in India, and the company plans to begin hiring for technology jobs after selecting a location later this year.
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Why is Starbucks opening a tech office in India
The company is looking to reduce operating costs and build a stronger internal technology structure. As per NDTV reports, Starbucks Chief Technology Officer Anand Varadarajan said the company wants to reduce outsourcing and handle more work directly through internal teams. Starbucks is focused on "reducing reliance on external service providers," Varadarajan wrote in the message. "Establishing a multi-site structure is a meaningful step toward that goal."
What changes is Starbucks making in technology operations
Earlier, Starbucks had outsourced many technology-related jobs during its restructuring process. However, the company is now changing that plan and wants to bring several of those roles back under its direct management. As per NDTV report, company officials believe that depending on third-party technology firms increases overall costs because of extra service charges and middleman fees.
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How will the India office affect hiring plans
The new India office will become Starbucks’ first corporate workplace in the country and is expected to create new technology job opportunities. At present, the company works with several technology service providers in India and other countries for different operation. As per NDTV report, company spokesperson said the goal is to "build closer connection to the work and the teams delivering it."
Last month, Starbucks announced that around 270 technology roles, nearly 20% of its tech workforce, would be shifted to a new office in Nashville, according to Bloomberg. The company also laid off some technology employees as part of its restructuring plans.
Since February last year, Starbucks has cut more than 2,000 jobs, including around 300 layoffs this week, as the company continues efforts to reduce costs and reorganise operations.
