Starbucks orders four-day in-office work for employees

Starbucks will require employees to report on-site four days a week starting in October, with a one-time cash payment being offered to those who opt out.

CEO Brian Niccol said the common days will be Monday, Tuesday, Wednesday, and Thursday. The mandate will be applied to the company's Seattle and Toronto Support Centres, as well as regional offices in North America.

"We want leaders and people managers to be physically present with their teams. In February we asked all vp+ leaders working remotely to begin relocating to Seattle or Toronto," Niccol said in the announcement.

"We are now extending this requirement to all Support Center people leaders who will be expected to be based in Seattle or Toronto within 12 months."

The CEO acknowledged that the company's updated in-office culture may not work for everyone.

"If you decide you want to leave Starbucks for any reason, we respect that," he said. "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."

Re-establishing in-office culture

Starbucks joins the growing list of organisations mandating more office days for employees after the COVID-19 pandemic made working from home and other flexible working arrangements necessary.

In addition to more on-site days, Niccol said hiring for future roles and lateral moves will require employees to be Seattle- or Toronto-based.

According to the CEO, employees working on-site are able to share ideas more effectively, creatively solve hard problems, and move much faster.

It also helps the company strengthen its culture at a time when it is seeking to revitalise the company's weaker earnings and sales declines.

"We understand not everyone will agree with this approach," Niccol said. "We've listened and thought carefully. But as a company built on human connection, and given the scale of the turnaround ahead, we believe this is the right path for Starbucks."