Starbucks to open India tech hub and insource roles, cuts 300 jobs with $400M charge
Starbucks will launch its first corporate technology office in India in fiscal 2027 to insource critical tech roles and cut $2B in expenditures by reducing vendor markups. Starbucks is cutting 300 U.S. corporate positions, closing four regional offices and taking a $400M restructuring charge as part of broader cost-reduction measures.
1. India Tech Office Launch
Starbucks plans to establish its first corporate technology office in India in fiscal 2027, aiming to insource critical technical roles previously handled by third-party contractors and bypass vendor markups to protect corporate margins. The company expects to finalize a site later this year and begin recruiting as part of its $2 billion expenditure reduction strategy.
2. U.S. Corporate Job Cuts and Office Closures
Starbucks is eliminating 300 U.S. corporate positions—approximately 3% of its domestic corporate workforce—and closing regional offices in Atlanta, Burbank, Chicago and Dallas. The restructuring entails a $400 million charge, including $280 million for office closures and $120 million in severance, and affects support functions such as marketing, human resources and supply chain.
3. Broader Restructuring Context
These moves follow earlier actions under CEO Brian Niccol, including the relocation of 270 technology roles to a new Nashville hub and over 2,000 corporate cuts since February 2025. Starbucks is also reviewing its international corporate structure and anticipates further reductions outside the U.S. to streamline operations and enhance profitability.