Starbucks forced to pay its baristas manually because of a ransomware attack on third-party software | CNN Business

Starbucks Grapples with Ransomware Attack as Blue Yonder Hack Disrupts Operations

In an unsettling development for Starbucks and its workforce, a ransomware attack has compromised the third-party software used by the coffee giant to manage its baristas’ schedules. This disruption has forced Starbucks to revert to manual payroll processes to ensure employees are paid correctly, as confirmed by a company spokesperson on Monday.

Immediate Response and Manual Workarounds

The attack has targeted Blue Yonder, an Arizona-based cloud services provider, which is known for its extensive clientele, including grocery stores and Fortune 500 firms. Starbucks has taken swift action, instructing store leadership on how to manually navigate the scheduling outage and assuring employees that all hours worked will be compensated. Jaci Anderson, a Starbucks spokesperson, emphasized the company’s commitment to resolving the issue and maintaining operational continuity.

Wider Impact Across Industries

Starbucks is not alone in facing the repercussions of the Blue Yonder hack. The incident has also affected major UK grocery chains, which are currently implementing measures to mitigate the impact. This widespread disruption highlights the vulnerability of interconnected supply chain systems to cyber threats.

According to a report by The Wall Street Journal, the attack has prompted other corporations, such as automaker Ford, to investigate potential impacts on their operations. Ford has stated that it is actively assessing the situation to determine any ramifications for its systems.

Blue Yonder’s Response and Ongoing Recovery Efforts

Blue Yonder has declined to specify which clients have been affected. However, the company has issued a public statement indicating that it is working tirelessly to address the incident. To aid in its recovery efforts, Blue Yonder has enlisted the help of US cybersecurity firm CrowdStrike, as confirmed by sources familiar with the matter. CrowdStrike has declined to comment further, directing inquiries back to Blue Yonder.

The Ever-Present Threat of Ransomware

Ransomware attacks, which involve cybercriminals encrypting systems to demand ransom payments, have become increasingly pervasive. In 2023, cybercriminals extorted a record $1.1 billion globally, despite governmental efforts to thwart these activities, according to data from Chainalysis. The holiday season, in particular, offers a fertile ground for such attacks as businesses rush to meet consumer demands.

A study by cybersecurity firm Semperis revealed a troubling trend: 86% of organizations surveyed in the US, UK, France, and Germany reported being targeted by ransomware attacks during holidays or weekends. This underscores the need for robust cybersecurity measures and preparedness across industries.

Challenges Ahead for Starbucks

This ransomware attack adds to the challenges facing Starbucks CEO Brian Niccol, who is already contending with declining sales over three consecutive quarters. The incident highlights the critical need for companies to bolster their cybersecurity frameworks to safeguard against potential disruptions.

As the situation unfolds, the ongoing efforts by Blue Yonder and Starbucks to restore normalcy will be closely watched. This incident serves as a stark reminder of the vulnerabilities in today’s digital age and the importance of resilience in the face of cyber threats.

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