Starbucks CEO sends a stern message to loyal employees | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Between what seems like endless waves of layoffs at one large company after another and the ongoing threat of AI eliminating jobs, it’s a scary time for employees.

In tech, just about every big name has done layoffs so far this year, including Microsoft, Google, Meta, and Intel. Some, such as Microsoft, have done multiple rounds of layoffs.

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The retail world has also seen more of the same, with Walmart, Starbucks, Amazon, and Wayfair just a few of the names that have let people go this year.

For those lucky enough to still be employed, they may be facing a new mandate from their employer, a requirement that has grown more popular in the years since the pandemic.

While many moved to working from home due to Covid’s outbreak in 2020, some have continued to do so ever since, finding themselves able to accomplish their tasks in a more productive manner without the discomfort of a daily commute.

But a trend of going back to the office has emerged in recent years, with most major companies asking that employees either come back on a hybrid schedule or stop working from home altogether and come back to the office.

Now Starbucks (SBUX) is the latest to make that move.

Starbucks is emphasizing the importance of in-person work culture.

Image source&colon; Shutterstock-Sorbis

Starbucks ‘reestablishing an in-office culture’

In a news blog on the company’s official website posted on July 14, CEO Brian Niccol unveiled the latest phase of his “Back to Starbucks” plan: requiring more people to come back to work in person.

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“We will shift from required three-days in office to minimum of four-days in office,” the notice reads. “Common days will be Monday, Tuesday, Wednesday and Thursday; this applies to our Seattle and Toronto Support Centers as well as North America regional offices.”

Niccol says that this requirement will begin in the new fiscal year.

Another change mentioned is that Support Center people leaders who previously worked remotely will now be asked to relocate to Seattle or Toronto within 12 months.

While individual contributors are not being asked to move, Niccol also notes that future hiring for these roles will be done in Seattle and Toronto only.

“We understand not everyone will agree with this approach,” the message says. “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.”

For those that don’t agree with the change, Starbucks has a solution for that too: it will pay you to leave.

“If you decide you want to leave Starbucks for any reason, we respect that. To support those who decide to ‘opt out,’ we’re offering a one-time voluntary exit program with a cash payment for partners who make this choice. Sara Kelly will share more details soon,” the message says.

Why Starbucks is making this move

Ever since Niccol joined the company in September 2024, the CEO has been making aggressive moves to rehabilitate the brand.

These have included a simpler menu, handwritten messages on cups, ditching the non-dairy milk upcharge, the return of the condiment bar, and free refills of hot and iced brewed coffee and tea during a visit.

All the changes are an effort to make the coffeehouse feel warmer and more inviting and to encourage customers to gather there — a sentiment that seems to be reflected in Niccol’s return-to-office mandate as well.

“We are reestablishing our in-office culture because we do our best work when we’re together,” Niccol said in his blog post.

“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.”

This is not his first time addressing the remote work issue. In October, he told employees they could be fired if they didn’t come back to the office three days a week.

Ironically, Niccol himself is not bound by the same rules he’s asking his employees to honor.

“In a recent filing to the U.S. Securities and Exchange Commission, Starbucks revealed that Niccol ‘will not be required to relocate’ to the company’s headquarters in Seattle, Washington, and will instead commute from his home in Newport Beach, California, to the office via private jet to perform his ‘duties and responsibilities,'” TheStreet’s Patricia Battle reports.