CTO Leaves Starbucks as Company Doubles Down on Tech Plans

Starbucks’ Chief Technology Officer, Deb Hall Lefevre, has stepped down, with no permanent successor named yet. According to an internal memo shared with staff, she’s retiring, and the company has appointed Ningyu Chen, previously Senior Vice President of Global Experience Technology, as interim CTO.

Her departure comes at a time when Starbucks is working through a restructuring that includes job cuts, store closures, and a major shift in how technology is used across its operations.

Despite the leadership change, the company says its tech priorities are staying the same, focused on improving store efficiency and customer experience through automation and AI tools.

Why It Matters: Tech leaders at enterprise companies can take a lot from this moment. Starbucks is navigating a combination of talent shifts, cost pressure, and ambitious technology goals, all in a public environment. The challenge is one many CIOs and CTOs will recognize: how to drive meaningful operational change with digital tools, while also keeping teams aligned, vendors accountable, and customer experience front and center, even when the org chart is in flux.

• CTO Transition Comes at a Busy Time: Lefevre’s departure creates a leadership gap during an important implementation phase. Chen, now serving as interim CTO, has been involved in the company’s customer experience tech efforts and will be overseeing the ongoing rollout of AI initiatives. Starbucks has not said when it expects to appoint a permanent replacement.

• AI Tools Are Being Embedded into Store Operations: Starbucks has started deploying an automated inventory counter powered by AI to all company-owned stores in North America. The goal is to reduce the time store employees spend on routine stock counts. The company is also piloting or expanding other tools: an AI assistant to support baristas, an upgraded point-of-sale system, and a queuing algorithm that helps teams manage order flow during rush hours. These efforts are part of a move to increase productivity without compromising customer service.

• Store Network and Headcount Are Being Trimmed: As part of its cost-saving efforts, Starbucks plans to close several hundred underperforming stores in the U.S. and Canada by the end of fiscal year 2025, resulting in a 1% reduction in its company-owned store count in those regions. In parallel, 900 additional corporate roles, mostly non-retail, are being eliminated. That follows 1,100 job cuts earlier in the year, with many of those roles tied to technology and digital functions.

• Sales Slump Adds Pressure, Tech Expected to Deliver Results: Starbucks has now reported six straight quarters of declining sales, and its stock is down more than 12% over the past year, even as the broader S&P 500 rose 16%. CEO Brian Niccol, who took over last year, is leaning heavily on technology to improve performance and rebuild what the company calls its “coffeehouse experience.” The tech team’s work is central to this strategy, referred to internally as “Back to Starbucks”, which blends operational streamlining with updates to digital ordering, drive-through flow, and in-store service models.

• Starbucks Is Rebalancing In-House vs. Outsourced Tech Work: As internal tech roles are reduced, Starbucks is increasingly working with outside vendors to support its IT operations. Tata Consultancy Services (TCS) has taken on a growing role in delivering core technology services. This shift reflects a broader trend in enterprise IT: focusing internal resources on strategic priorities while outsourcing more operational or support functions.

Go Deeper -> Starbucks CTO resigns, but its AI overhaul is still brewing – Fast Company

Starbucks CTO resigned Monday amid tech revamp – Reuters

Starbucks CTO steps down amid wider restructuring – GlobalData