Starbucks CEO gives employees huge ultimatum with stern message
Faima Bakar
Featured Image Credit: JohnFScott/Getty Images
After joining Starbucks in September 2024 as the company's new CEO, it didn't take long for Brian Niccol to ruffle a few feathers.
In fact, it was just a matter of weeks ago that he found himself with his tail between his legs after introducing a string of controversial changes, including cutting back on in-store seating after the pandemic - something he later admitted was a 'misfire'.
However, it seems he's now doubling down on his drastic approach, having announced a new shakeup for his employees.
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While Starbucks baristas obviously don't get the privilege of working from home - after all, they can't exactly make your shaken oat espresso latte from their living room - non-shop floor staff at the retailer are now being called back to the office, having been handed a stark ultimatum under Niccol's 'Back to Starbucks' plan, requiring employees to be in the office for the majority of the working week.
The former Chipotle CEO is also introducing other stringent rules which could see people being made redundant or having to relocate.
In the new Starbucks plan, a notice shared on a blog post read: "We will shift from required three-days in office to minimum of four-days in office. 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."
What's more is that people who worked in Starbucks' Support Center remotely will be asked to relocate to Seattle, U.S, or Toronto, Canada, within 12 months.
The post continued: "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."
Anyone who isn't on board will be offered the option to just be paid to leave, said Starbucks. "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."
The changes, set to be introduced in the new fiscal year, come after Starbucks reported a decline in profits and sales, with a significant drop in its Q4 2024 results. This downturn led to a shake-up in leadership and a reevaluation of the company's strategies, with Niccol stepping in and introducing a range of measures, including customer incentives such as dropping the extra charge for non-dairy milk, free refills of hot and iced brewed coffee and tea, and handwritten messages on cups.
In a blog post, the CEO said: "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."