Starbucks has announced that corporate employees are now required to work in-office for four days each week, effective October, an increase from the previous three-day minimum requirement. This decision comes as part of a broader strategy to enhance the company's operations amid declining sales and other significant challenges. Workers in the United States and Canada who are unwilling to adhere to this new policy will be provided with a one-time financial compensation to exit the company.
Brian Niccol, Starbucks' CEO, who has been in his role for less than a year, stated that the change aims to facilitate the company's best performance during its turnaround phase. "We understand not everyone will agree with this approach," Niccol wrote on the company blog. He emphasized the importance of human connections within the company and the need for a transformational approach to address the current situation.
In addition to the in-office work requirement, certain management personnel will need to relocate to Starbucks' headquarters in Seattle or its Toronto branch. Interestingly, while Niccol’s contract did not obligate him to move to Seattle, he has opted to settle there after previously maintaining a residence near his hometown in California.
This policy change is part of several initiatives introduced by Niccol to revitalize Starbucks, which include overhauling menu offerings and altering customer access in its North American cafes. As part of these changes, a previous policy that allowed individuals to use the facilities without purchasing anything will now be revisited.
Earlier this year, Starbucks also laid off approximately 1,100 employees. This new in-office work mandate follows trends echoed by other major firms, such as Amazon and JP Morgan, which have also tightened their remote working policies. Research from institutions such as Stanford University and the Instituto Tecnológico Autónomo de México indicates that about a third of employees with remote capabilities have been called back to work full-time in the office, while around 20% maintain completely remote positions, and about 45% benefit from hybrid work arrangements.