Starbucks’s chief expertise officer Deb Corridor Lefevre resigned with no everlasting substitute, based on an inner memo despatched to company workers on Monday, seen by Reuters.
The memo, written by the corporate’s chief monetary officer Cathy Smith, named Ningyu Chen, beforehand senior vice chairman of worldwide expertise expertise, as interim CTO.
Lefevre’s resignation comes as Starbucks introduced its second spherical of deep cuts in company roles, efficient Friday, as CEO Brian Niccol pushes a tech revamp in shops to make labor extra environment friendly, a part of a turnaround technique to revive flagging gross sales after six consecutive quarters of decline.
Utilizing AI to revamp how cafés function
The revamp contains an AI-powered automated stock counter that’s within the technique of being rolled out to all company-owned shops in North America by the tip of September. Different initiatives embrace an AI assistant for baristas, a brand new point-of-sales system, and a queuing algorithm meant to assist baristas sequence orders throughout rush hour.
Lefevre, a former McDonald’s government, was employed in Could 2022 as a part of the chain’s concentrate on enhancing its drive-through, cell ordering, and different methods. The memo stated she deliberate to retire.
“Our tech priorities aren’t altering,” the memo stated. “We’re targeted on the tech work wanted to ship our ‘Again to Starbucks’ plan.”
Lefevre didn’t reply to a request for remark Thursday evening.
On Thursday, the corporate stated it could shut underperforming shops in the US. Its general company-owned U.S. and Canada retailer rely is predicted to drop by 1%, with a number of hundred shops anticipated to shut by the tip of the 2025 fiscal yr. It additionally stated 900 non-retail roles could be eradicated, with affected staff being notified Friday.
The expertise initiatives are a part of a company turnaround referred to as “Again to Starbucks” being pursued by CEO Brian Niccol, who took the helm final yr to revive the chain’s fortunes. He has aimed to revive the chain’s “coffeehouse” attraction following six consecutive quarters of gross sales declines.
Starbucks’s February layoffs of 1,100 company staff hit the IT crew significantly laborious, a supply aware of the matter stated Thursday. They stated an out of doors contractor named Tata Consultancy Providers, based mostly in India, has been given an growing position in Starbucks’s IT division.
Starbucks in an announcement Friday stated the corporate will “proceed to have a really vital in-house expertise crew, however the focus is on an important capabilities and an important work.”
Shares have misplaced greater than 12% of their worth over the past 12 months, in contrast with a 16% improve within the broad-market Commonplace & Poor’s 500 Index.
—By Waylon Cunningham, Reuters
