In a move to optimise operations and reduce dependency on external vendors, Starbucks is actively exploring new global locations for its technology workforce. The company is looking beyond its recently announced Nashville office and considering both domestic and international sites.
The strategy is part of a broader effort to cut technology costs, after already reducing spending by $100 million in the last 90 days. According to Chief Technology Officer Anand Varadarajan, Starbucks aims to bring more roles in-house instead of relying on third-party providers that charge additional markups despite operating in lower-cost regions.
Currently, about 45% of Starbucks’ tech workforce is in-house. The company now plans to increase this to at least 80%. “We’re going to be planning for more sites in the future,” Varadarajan said, adding, “It would be kind of facetious and disingenuous for me to say we’re not looking at sites outside of the United States.”
This shift comes as Starbucks continues its turnaround strategy following declining sales, with efforts led by CEO Brian Niccol since late 2024. The company is targeting $2 billion in cost reductions while also investing in hiring store staff and upgrading café experiences.
As part of its Nashville expansion, Starbucks is relocating around 270 technology roles, which accounts for about 20% of its current tech workforce. The new office, expected to cost $100 million, will accommodate around 2,000 employees. However, some employees have shown reluctance to relocate despite offered packages.
The company is focusing on locations that provide access to skilled talent, proximity to suppliers, and lower operational costs such as taxes and labour. While Nashville is a key step, Starbucks has confirmed it is still evaluating additional sites globally.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
