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Starbucks Enforces Return-to-Office Policy with Potential Job Losses

Starbucks Enforces Return-to-Office Policy with Potential Job Losses
Starbucks CEO Brian Niccol (Robin Marchant / Getty Images)
  • PublishedOctober 29, 2024

Starbucks Corp. has announced that corporate employees could face termination if they do not comply with the company’s return-to-office policy, which requires staff to work in the office at least three days a week starting in January, Fortune reports.

A memo outlining these changes was shared with one of the company’s divisions and was reported by Bloomberg News.

The new policy marks a significant step in enforcing Starbucks’ hybrid work rules, especially following the appointment of Brian Niccol as CEO. In a recent address to employees, Niccol emphasized the importance of working in the office while acknowledging that staff should choose the work environment that best supports their productivity.

Starbucks clarified that vacation, sick leave, and business travel are excluded from the attendance calculations. Employees can also request exemptions from the policy based on physical, mental, or sensory impairments, as well as other disabilities. Approximately 3,500 corporate employees will be subject to this policy, while the majority of Starbucks’ workforce operates in retail locations.

In its official statement, Starbucks affirmed its commitment to supporting managers in holding teams accountable to the existing hybrid work policy. This shift comes as many companies reevaluate their approaches to remote work. Notably, Amazon recently mandated a return to the office five days a week, and other firms, including Dell Technologies and various Wall Street banks, have implemented similar pressures on remote workers.

Despite these efforts, office occupancy in major US cities remains significantly lower than pre-pandemic levels, with data from security firm Kastle Systems indicating that many workspaces are still underutilized. Additionally, some companies have recognized that strict return-to-office mandates may inadvertently serve as a means to encourage layoffs, with a survey revealing that one in four executives hoped to see voluntary turnover as a result of their policies. However, research indicates that those who leave are often the more experienced employees that organizations can ill afford to lose.

Starbucks faced employee pushback during previous attempts to enforce its hybrid work policies, including an open letter from dozens of corporate staff members. Niccol’s own work arrangement, which permits him to live in California and travel to Seattle via corporate jet, has also drawn criticism from some employees, though many have expressed that they are more concerned about in-office requirements than his geographic location.

As part of the new policy, Starbucks will also abandon the requirement for a designated common attendance day, such as Tuesday, instead allowing teams to set their own attendance expectations.

Written By
Joe Yans