As Starbucks Aggressively Pushes AI Automations, Chief Technology Officer Deb Hall Lefevre Resigns Without Permanent Replacement – CoffeeTalk

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Starbucks’ Chief Technology Officer, Deb Hall Lefevre, has resigned without a permanent replacement, according to an internal memo sent to corporate staff. The memo, written by Chief Financial Officer Cathy Smith, named Ningyu Chen, previously senior vice president of global experience technology, as interim chief technology officer. Starbucks announced its second round of deep cuts in corporate roles, effective Friday, as CEO Brian Niccol pushes a tech revamp in stores to make labor more efficient. The revamp includes an AI-powered automated inventory counter, an AI assistant for baristas, a new point-of-sales system, and a queuing algorithm to help baristas sequence orders during rush hour.

Lefevre, a former McDonald’s executive, was hired in May 2022 as part of the chain’s focus on improving drive-through, mobile ordering, and other systems. The memo said she planned to retire. Starbucks also announced it would close underperforming stores in the United States, with its overall company-owned U.S. and Canada store count expected to drop by 1%. It also announced 900 non-retail roles would be eliminated, with affected employees being notified Friday.

The technology initiatives are part of a corporate turnaround called “Back to Starbucks” being pursued by CEO Brian Niccol, who took the helm last year to revive the chain’s fortunes. Starbucks’ February layoffs of 1,100 corporate employees hit the IT team particularly hard, with an outside contractor named Tata Consultancy Services given an increasing role in the Starbucks IT division.

Read More @ Reuters

Source: Coffee Talk

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