Starbucks CEO Brian Niccol announced on Monday (July 14) the return to office policy, requiring management staff to return to headquarters starting in October and work in the office for four days a week, instead of the previous three days.
In a letter to employees, Niccol stated that the implementation of the return to office policy is to assist Starbucks in its transformation and improve the brand’s poor sales performance in the American market. Employees who are not willing to comply can participate in the “voluntary resignation plan” and receive compensation to leave.
He mentioned that all “executive-level” personnel must return to work at the Seattle or Toronto offices within 12 months, but these executives will not be required to relocate their subordinates. Niccol also added that all future new positions and lateral moves must be stationed in Seattle or Toronto.
The new regulations expand the scope of application, requiring more executives to return to the office. In February of this year, Starbucks only required employees at the “vice president level” to move back to the Seattle or Toronto offices.
Niccol wrote in the letter, “We are rebuilding office culture because we perform at our best when we work together. We can communicate ideas more effectively, creatively solve problems, and significantly improve work efficiency.”
A Starbucks spokesperson mentioned that the company has 16,000 corporate employees globally but has not yet calculated how many executive-level employees are working remotely.
When Niccol took over as Starbucks CEO in August last year, he was not required to relocate to Seattle but was allowed to work at an office in Newport Beach, California, with private jet access for travel to and from Seattle. Later, he purchased a property in Seattle and frequently worked at the headquarters.
Recently, there has been a growing demand for employees to return to the office from major corporations, including Amazon, AT&T, and federal government employers, requiring employees to be in the office five days a week.