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Starbucks will require corporate staff to be in the office at least four days a week and is offering cash to employees who decide to quit instead, as executives bank on in-person work to improve the company’s flagging performance.
The world’s largest coffee house chain on Monday increased the number of days employees are required work in the office from three to four.
The mandate from chief executive Brian Niccol shows how some US companies are retreating from liberal remote work policies adopted during the pandemic. Amazon, which like Starbucks is headquartered in Seattle, this year ordered staff to be in the office five days a week.
All Starbucks corporate managers with direct reports will also be required to work from the Seattle or Canadian headquarters in Toronto within 12 months, the company said.
Niccol said in a message to employees: “We know we’re asking a lot of every partner as we work to turn the business around. And we understand that the updated in-office culture may not work for everyone.”
“To support those who decide to ‘opt out,’ we’re offering a one-time voluntary exit programme with a cash payment for partners who make this choice,” he added.
The vast majority of Starbucks’ more than 350,000 employees work inside its coffee houses. Executives plan to hire more baristas to improve customer service and reverse a protracted slide in sales.
Fewer than 20,000 are employed in corporate support, as well as in store development, roasting, manufacturing, warehousing and distribution, according to its annual report.
Starbucks in February cut 1,100 office jobs and eliminated hundreds of open and unfilled positions. Company leaders with the status of vice-president or higher who had been working remotely were required to work from the Seattle or Toronto offices. Monday’s announcement applied that requirement to all corporate managers.
Niccol joined Starbucks last year from Newport Beach, California-based Chipotle Mexican Grill with a goal of turning around the coffee chain’s flagging business. His employment agreement promised him a “small remote office” in Newport Beach and said he would not be required to relocate to Seattle.
Starbucks said Niccol has an office and a house in Seattle.
Niccol wrote: “We are re-establishing our in-office culture because we do our best work when we’re together. We share ideas more effectively, creatively solve hard problems, and move much faster. Being in-person also helps us build and strengthen our culture. As we work to turn the business around, all these things matter more than ever.”
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