Starbucks to corporate staff: Relocate or resign

Starbucks is offering a one-time voluntary exit program. (Courtesy: Reuters photo)

Starbucks has raised the bar on in-office work, with the company stating its corporate staff must report to the office at least four days a week starting October. It is among the chain's numerous "Back to Starbucks" turnaround initiatives targeting a return to growth after a year of weakening sales, in-house restructuring, and brand protests, the New York Times reports.

Chief Executive Brian Niccol informed employees Monday that in addition to the expanded in-office requirement, remote leaders and managers working out of Starbucks's Support Center must relocate to Seattle or Toronto within 12 months. This is in follow-up to a February ultimatum which asked the company's vice presidents to move base to one of the two cities.

An exit for those who won't comply

Understanding that no one can be in the same boat, Starbucks is offering a one-time voluntary exit program. Eligible employees who do not wish to go along with the new hybrid model will be offered a cash payout to exit the organization.

A plea for human connection

We know not everyone will be in support of this strategy," Niccol said in the press release. "But as a people-focussed company, and given the scope of the turnaround ahead, we believe this is the best approach for Starbucks.".

Niccol, who maintains a headquarters in Southern California, has a private rider in his contract that allows him to travel to Starbucks's Seattle headquarters on the corporate plane. Starbucks said he also maintains an office and an apartment in Seattle.

Not alone in needing returns

The coffee giant is part of an expanding list of large corporations rethinking their office return plans. JPMorgan, which implemented a strict return-to-office policy in March, was forced to shut down company chat rooms after it created controversy and talk of unionization. Amazon's return to the office in January was seemingly derailed by space limitations, with workers facing a lack of desks and parking spots.

Facing a year of setbacks

The move comes as part of larger efforts to turn around Starbucks, which has been seeing slowing customer traffic, executive turnover, and politically charged boycotts in recent months. Last February, the company terminated 1,100 corporate workers, a clear indication that its leadership was intent on cutting costs and aligning performance.