Starbucks CTO Resigns Amid Tech Revamp, Job Cuts

Starbucks Chief Technology Officer Deb Hall Lefevre has resigned, with no permanent replacement named, according to an internal memo. Chief Financial Officer Cathy Smith announced that Ningyu Chen will serve as interim CTO. Chen previously held the role of Senior Vice President of Global Experience Technology. Lefevre, who joined in 2022 from McDonald’s, reportedly plans to retire. Her departure comes as Starbucks faces major internal changes.

The company is undergoing a second round of corporate job cuts, part of a broader strategy led by CEO Brian Niccol. The turnaround plan, called “Back to Starbucks,” aims to boost efficiency and sales. Starbucks will eliminate 900 non-retail jobs and close underperforming stores across the U.S. and Canada. The store count is expected to drop by 1% by the end of fiscal year 2025. Affected employees will be notified starting Friday.

Technology plays a major role in Starbucks’ recovery efforts. The company is rolling out an AI-powered inventory counter to all North American stores by September’s end. Other tech initiatives include an AI assistant for baristas and a new point-of-sale system. A queuing algorithm is also being introduced to help manage peak-hour orders. These tools are designed to make operations faster and reduce staff burden.

Lefevre’s exit follows earlier layoffs in February that hit the IT department especially hard. A source said that Tata Consultancy Services, an India-based firm, is now handling more of Starbucks’ tech work. Despite outsourcing, Starbucks says it will retain a strong internal tech team. The focus, the company said, will remain on critical work and core capabilities. Technology priorities remain unchanged, according to the internal memo.

Starbucks is under pressure as its stock has dropped over 12% in the last year. This contrasts with a 16% gain in the S&P 500 Index. CEO Niccol hopes to reverse the company’s fortunes after six straight quarters of sales declines. By enhancing digital systems and streamlining operations, Starbucks aims to restore its coffeehouse charm and customer satisfaction.