Starbucks has announced that it will require some remote workers to return to its headquarters, significantly increasing the number of days that corporate employees must work in the office. In a letter to employees dated September 25, 2023, Starbucks Chairman and CEO Brian Niccol outlined that corporate employees will need to be present in the office four days a week starting in early October 2023, up from the current three days per week.
The changes specifically affect corporate “people leaders,” who are now required to relocate to either Seattle or Toronto within the next 12 months. Previously, in February, the company mandated that only vice presidents move to these locations. While individual employees under these leaders will not be asked to relocate, all future hiring and lateral moves will necessitate that employees are based in one of these two cities.
In his letter, Niccol emphasized the importance of in-person collaboration, stating, “We do our best work when we’re together. We share ideas more effectively, creatively solve hard problems, and move much faster.”
For employees who choose not to relocate, Starbucks is offering a one-time voluntary exit program that includes a cash payment. As many workers have adapted to remote work during the pandemic, the push for a return to full-time office work has intensified over the past year. Major companies like Amazon and AT&T, along with the federal government, have mandated that employees work on-site five days a week, illustrating a growing trend among employers.
Starbucks spokeswoman Lori Torgerson noted that she did not have an exact count of employees currently working as “people leaders” or those who are remote. The company employs around 16,000 corporate support staff worldwide, though this figure includes workers in various roles, such as coffee roasters and warehouse staff.
Interestingly, Niccol was not required to relocate to Seattle when he took over the leadership of Starbucks in August 2022. Instead, the company assisted him in establishing an office close to his home in Newport Beach, California, and provided access to a corporate jet for commuting to Seattle. Since then, he has reportedly purchased a home in Seattle and is frequently seen at the company headquarters.
This move by Starbucks reflects a broader shift in corporate culture as companies reevaluate remote work policies and prioritize in-person interaction to foster collaboration and innovation. The decision may impact employee retention and recruitment as businesses navigate the evolving landscape of work preferences in a post-pandemic world.
