Starbucks Tells Employees to Return to the Office or Take a Buyout: 'Not Everyone Will Agree with This Approach' Starbucks CEO Brian Niccol is pushing for more in-person work, stating that it strengthens company culture.
By Sherin Shibu Edited by Melissa Malamut
Key Takeaways
- Starbucks CEO Brian Niccol is calling corporate employees back to the office four days a week, up from the three-day requirement established in 2023.
- Niccol stated that those who wanted to leave the company in response to the return-to-office mandate could take a buyout.
Starbucks is calling corporate employees back to the office four days a week and offering a buyout to those who'd rather leave the company instead.
In a letter to employees on Monday, Starbucks CEO Brian Niccol said that at the beginning of the company's fiscal year in October, workers will be expected to be in the office four days a week, Monday through Thursday, up from the previous three-day requirement established in 2023.
However, he also offered a way out. Niccol noted that Starbucks corporate workers have the option for a "one-time voluntary exit program with a cash payment" of undisclosed value if they wish to leave the company in response to the return-to-office mandate.
"The default for support partners should be working in person, in a Starbucks office, alongside your team and cross-functional partners," Niccol wrote. "We understand not everyone will agree with this approach."
Niccol wrote that he has "listened" and "thought carefully" about the move to more in-person work, concluding that four days a week in the office is the best step for Starbucks going forward. Employees do their "best work" when they're together, and in-person work strengthens company culture, Niccol asserted.
"As a company built on human connection, and given the scale of the turnaround ahead, we believe this is the right path for Starbucks," Niccol wrote.
Starbucks CEO Brian Niccol. Photo by Michael Reaves/Getty Images
Niccol became Starbucks' CEO in September 2024 after spending six years leading Chipotle. Starbucks pays for Niccol to use a corporate jet to commute nearly 1,000 miles from his home in Newport Beach, California, to the company's headquarters in Seattle, Washington. His work schedule exceeds three days a week in the office, a Starbucks representative told CNBC in August.
Under Niccol's leadership, Starbucks has embarked on a turnaround plan called "Back to Starbucks," designed to revitalize slumping sales and make the coffee chain more of a welcoming place for customers.
Changes made so far include streamlining the menu by cutting 30% of it, aiming to make coffee in under four minutes, and offering a personalized touch by writing customers' names down on their cups.
So far, sales are still dwindling. Starbucks' most recent financial results in April showed that global store sales declined 1% for the quarter ending on March 30 compared to the same period last year. In the U.S., store sales dropped 2% for the quarter.
Starbucks still opened 213 net new stores in the quarter, ending the period with 40,789 global stores. More than 17,000 of those stores were located in the U.S.
Starbucks shares were up over 2% year-to-date at the time of writing. The coffee chain had a market value of $106.85 billion.
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