Starbucks Corporation (SBUX.US) makes adjustments after cutting over a thousand jobs: will outsource some technical work.

Starbucks Corporation (SBUX.US) is outsourcing some of its technical work. Starbucks Corporation's Chief Technology Officer Deb Hall Lefevre stated in a memo, "We are adjusting the mix of internal and outsourced talent resources." The memo revealed that the company's goal is to shift full-time employees to the company's most important projects, while relying on service providers for "speed and flexibility." Starbucks Corporation declined to disclose how many positions will be outsourced and which third-party vendors will be used. According to the company, an important internal technology team will still be in place, while external talent will be utilized for more routine work. The memo indicated that the technology team will undergo a broader restructuring, involving data and analytics, engineering, and other functions. On Monday, Starbucks Corporation announced the elimination of 1,100 jobs and a 30% reduction in the menu to reverse declining sales. This marks Starbucks Corporation's first round of layoffs since 2018. CEO Brian Niccol stated that these actions will improve efficiency and reduce complexity. It is worth noting that the 1,100 job cuts announced by Starbucks Corporation on Monday are only a part of the company's overall downsizing plan. In a letter to employees, Brian Niccol mentioned that Starbucks Corporation will eliminate 1,100 current positions as well as "hundreds" of vacant positions. Niccol had previously announced the upcoming layoffs, citing too many layers in the company and the goal of improving operational efficiency, accountability, reducing complexity, and promoting better integration. These adjustments come as Starbucks Corporation faces performance pressure. The financial results for the first quarter of the 2025 fiscal year (ending December 29, 2024) released by Starbucks Corporation show a slight decrease in quarterly revenue to $9.398 billion, down 0.3% year-over-year, and a 23.8% decrease in net profit to $781 million.