Investing.com — Starbucks Corp () plans to establish a new technology office in India as part of an ongoing corporate strategy to slice $2 billion in expenditures, according to a Bloomberg report citing an internal employee memo.
Scheduled to launch in the company’s fiscal year 2027, which begins in October, the facility will mark the coffeehouse chain’s first corporate office in India. Starbucks expects to initiate its recruitment push once a finalized site is selected later this year.
The tactical move is designed to insource critical technical roles previously managed by third-party contractors, reversing an outsourcing policy implemented during a prior corporate restructuring.
The decision highlights a structural shift away from external contractors toward a fully proprietary tech ecosystem.
According to the message sent by Chief Technology Officer Anand Varadarajan, Starbucks is explicitly focused on “reducing reliance on external service providers.” Varadarajan added that “establishing a multi-site structure is a meaningful step toward that goal.”
Anand has previously noted that third-party technology vendors levy a financial markup, which Starbucks aims to bypass by removing the middleman entirely to protect corporate margins.
The company currently works with technology providers across multiple countries, including India, to support its global retail architecture.
The goal of bringing these specific technical roles back in-house is to “build closer connection to the work and the teams delivering it,” a Starbucks spokesperson stated on Friday.
The international expansion comes amid a broader shakeup of the company’s domestic tech operations.
Starbucks previously disclosed that 270 technology roles, amounting to roughly 20% of its total technology workforce, would be relocated to a new office hub in Nashville, alongside a series of tech-sector layoffs.
Overall, the coffee giant has cut more than 2,000 corporate positions since February of last year, including 300 job cuts executed this week.