The goal is to shift full-time workers to the company’s most important initiatives while leaning on service providers for “speed and agility”
STARBUCKS will outsource some technology work following a reorganisation that resulted in 1,100 job cuts across its corporate ranks.
The Seattle-based chain started laying off workers on Monday (Feb 24), a move that chief executive officer Brian Niccol said would increase efficiency and reduce complexity as he tries to reverse a sales slump. Now, Starbucks’ tech group will turn to third-party workers for certain tasks.
“We are realigning our resource mix of internal and outsourced talent,” according to a memo from Deb Hall Lefevre, Starbucks’ chief technology officer, seen by Bloomberg News.
The goal is to shift full-time workers to the company’s most important initiatives, according to the memo, while leaning on service providers for “speed and agility”.
Starbucks declined to specify how many roles would be outsourced and to what third-party provider. A significant in-house technology team will still exist while external talent will be used for more routine work, according to the company.
The tech team will undergo a broader reorganisation cutting across data and analytics, engineering and other functions, according to the memo.
Starbucks workers who have lost their jobs were notified via e-mail and were then set up with a human resources representative to discuss severance, benefits and career transition assistance. The company has said workers affected would get pay and benefits until May 2. Corporate employees were asked to work remotely the whole week. BLOOMBERG
Share with us your feedback on BT’s products and services
