Starbucks Mandates In-Office Work Four Days a Week

In a bid to enhance performance amid declining sales, Starbucks now demands corporate staff to work on-site four days a week, offering a payout for those who opt out.

Starbucks has announced that its corporate employees must return to the office for four days a week, effective October. This shift elevates the previous requirement of three days and is part of a broader trend where numerous companies are tightening remote work regulations following extended protocols during the Covid pandemic. Those who don't adhere to the new policy, which affects employees in the United States and Canada, will be offered a one-time payment if they decide to resign.

Brian Niccol, Starbucks’ chief executive who took on the role less than a year ago, explained that this decision is crucial for the company's success amid falling sales and various operational challenges. In a company blog post, he shared, "We understand not everyone will agree with this approach... But as a company built on human connection... this is the right path for Starbucks."

As part of this revised policy, certain managerial staff will be required to relocate to Starbucks’ headquarters in Seattle or to Toronto. It's interesting to note that Niccol's contract didn’t initially require him to move to Seattle, as he established plans for a small remote office closer to his California hometown. He has since purchased a home in Seattle.

These new stipulations are just one element of Niccol's strategy to rejuvenate Starbucks. Additional actions have included transforming the menu and coffee shop experiences, as well as reinstating previous policies that allowed guests to use facilities without making purchases. Earlier this year, the company also let go of 1,100 employees as part of its operational restructuring.

Starbucks is not the only company clamping down on remote work; major firms like Amazon and JP Morgan have also made similar adjustments. Research from institutions such as Stanford and the University of Chicago indicates that working arrangements have remained quite stable, with approximately one-third of employees in remote-capable roles called back to the office full-time and about 45% favoring hybrid arrangements.