Company offers exit packages with focus on Toronto, Seattle offices
Starbucks is making a big push to bring its office workers back together, and the message from the top is clear: more face time is the new normal.
In a recent update, CEO Brian Niccol outlined a shift in company policy that will see support partners and people managers spending at least four days a week in the office, up from the previous three.
“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,” he wrote.
For those who feel the new in-office culture isn’t a fit, Starbucks is offering a voluntary exit program with a cash payout, said Niccol.
“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.”
Starbucks looking to ‘turn business around’
The new policy kicks in with the start of the new fiscal year, and Starbucks says it will provide more details before October, including plans for dedicated desks for everyone.
The move isn’t just about showing up—it’s about building a culture, said the CEO.
“We are reestablishing our in-office culture because we do our best work when we’re together. 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.”
Back in April, Starbucks reported weaker-than-expected earnings and another quarter of same-store sales declines, said CNBC, but the coffee giant said its turnaround strategy was showing early signs of success.
“Our financial results don’t yet reflect our progress, but we have real momentum with our ‘Back to Starbucks’ plan,” Niccol said in a video posted on the company’s website. “We’re testing and learning at speed and we’re seeing changes in our coffeehouses.”
Some of those tweaks include scaling back plans to automate more coffee-making and investing more in labour, which weighed on earnings during the quarter, said CNBC.
Relocations to Seattle, Toronto
For those in leadership roles, the company is raising the bar even higher. All support centre people leaders are now expected to relocate to Seattle or Toronto within a year, said the CEO in his recent post.
“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. 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 update reads.
Individual contributors aren’t being asked to move, but future hires and lateral moves will be limited to those willing to work from Seattle or Toronto. The company will still allow “in-market roles” for jobs that need to be in a specific location, but those will be the exception.
Flexibility at Starbucks
Niccol claimed that flexibility is still part of the equation at the company.
“We… know you sometimes need to step out or leave early to attend an event at your kid’s school, see the doctor, or handle other personal matters. That’s expected and completely okay. But the default for support partners should be working in-person, in a Starbucks office, alongside your team and cross-functional partners.”
He acknowledged that not everyone will be thrilled with the new direction.
“We understand not everyone will agree with this approach. 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.”
When Starbucks recently introduced a new dress code for employees at more than 120 U.S. stores, it triggered a coordinated strike by more than 2,000 baristas, and the issue quickly became a flashpoint in a much broader labour dispute that had already been simmering for over a year.
