Starbucks Employees Required to Return to Office Four Days a Week

The policy aims to enhance productivity as the company grapples with declining sales and industry changes.

Starbucks is implementing a new policy that mandates its corporate staff work in the office for four days a week, effective October. This decision raises the in-office requirement from three days as part of the company's push to limit remote working, which significantly surged during the COVID-19 pandemic. Employees who do not wish to comply with this new guideline, applicable in both the U.S. and Canada, will be offered a one-time payout as a severance option.

Brian Niccol, the Starbucks CEO, who took the helm less than a year ago, states that this shift will enable the firm to perform its "best work" amidst falling sales and prevailing operational challenges. He expressed in a company blog that while the decision may not meet everyone's approval, the company is anchored in human connections, necessitating a return to a more collaborative work environment.

As part of the revamped policy, certain managerial positions will require relocation either to Seattle, the company's headquarters, or Toronto. While Niccol's initial contract allowed him to avoid relocating to Seattle, he has since purchased a home there. This policy revision is part of a broader array of changes aimed at revitalizing Starbucks, which necessitates revamping menus, coffee shop layouts, and reversing previous policies that allowed customers to utilize store facilities without making a purchase.

Earlier this year, Starbucks reduced its workforce by 1,100 positions. Other major firms like Amazon and JP Morgan are also tightening their remote work policies. According to research conducted by Stanford, the Instituto Tecnológico Autónomo de México, and the University of Chicago, the patterns of work in recent years have generally remained stable, with about one-third of employees able to work remotely being called back to the office full-time, while approximately 20% remain fully remote, and around 45% benefit from a hybrid working arrangement.