Starbucks is sunsetting its AI inventory program after it reportedly miscounted and mislabeled store items.
Another common mistake the AI program made was mixing up different types of milk or skipping them altogether. The program was only active for nine months, according to Reuters.
“With a quick scan using a handheld tablet, partners can instantly see what’s in stock — ensuring cold foam, oat milk, or caramel drizzle are always available,” a now-deleted blog post explaining the AI program read. “Customers can enjoy beverages their way, every time — and partners [Starbucks’ term for its employees] spend less time in the backroom and more time crafting and connecting.”
The program was part of Starbucks CEO Brian Niccol’s vision to fix persistent product shortages. Product availability is one of Niccol’s goals in his corporate turnaround campaign — Back to Starbucks.
“Starting today, Automated Counting will be retired,” an internal company memo obtained by Reuters read. “Beverage components and milk will now be counted the same way you count other inventory categories in your coffeehouse.”
Starbucks laying off more than 250 corporate employees this summer, including VPs, senior managers
More than 250 Starbucks corporate employees will be laid off starting July 17.
According to a Worker Adjustment and Retraining Notification (WARN) notice filed with the state of Washington, 252 employees at the company’s support center, who either work in Seattle or work remotely and report to a manager based in Seattle, are being laid off this summer. The cuts affect only corporate roles, not baristas or store staff. Included in the layoffs are several vice presidents, directors, and senior managers.
The 252 layoffs were part of a 300-cut swath across the U.S., first reported by GeekWire last week. The move followed recent reports that Starbucks is restructuring nationwide and eliminating hundreds of corporate positions as sales soften and the company looks to reduce costs. Just last week, 61 local tech employees were laid off.
Starbucks is additionally shuttering select regional support offices in Atlanta, Burbank, Chicago, and Dallas while maintaining its Seattle headquarters and offices in New York, Toronto, Coral Gables, Florida, and its new office in Nashville, which has yet to open, according to GeekWire.
The company cut nearly 2,000 corporate roles in 2025.
Follow Frank Sumrall on X. Send news tips here.
This story was originally posted to MyNorthwest.com
©2026 Cox Media Group
