The coffee chain aims to replace third-party software with AI-built systems, targeting annual savings of $400 million.
Starbucks plans to cut $400 million in annual software costs by developing AI-powered tools internally, replacing third-party applications. The move follows a pledge by its CTO to reduce spending on external software systems.
The company currently relies on vendors like Microsoft and IBM, whose shares fell 2.4% and 5.2%, respectively, after the report. Starbucks shares rose 3%, extending its 25% year-to-date gain.
The shift includes replacing Oracle’s Simphony point-of-sale system with an in-house alternative, part of a broader review of all software contracts.