Starbucks Navigates Leadership Shift and Tech Focus Amid Restructuring

Starbucks has initiated a significant leadership transition, naming Ningyu Chen as interim Chief Technology Officer following the resignation of Deb Hall Lefevre. The shift comes as part of a broader strategy to enhance technological innovation critical to the 'Back to Starbucks' plan, a corporate restructuring effort aimed at revamping the global coffeehouse's appeal.

Despite Lefevre's departure, Starbucks remains firm on its technological goals. Recent initiatives include the rollout of an AI-powered inventory system and a new point-of-sales system to improve operational efficiency. In pursuit of these advancements, Starbucks is preparing to shutter underperforming outlets and trim 900 non-retail roles by 2025.

Amid these changes, Starbucks has faced a challenging market. The company's shares have decreased by 12% over the last year, contrasting with a significant rise in the S&P 500 index. As the Seattle-based chain focuses on strengthening its business model, the transition of IT responsibilities to Tata Consultancy Services highlights a shift towards outsourcing to remain competitive.

(With inputs from agencies.)