Starbucks to mandate workers return to office 4 days/week as CEO Brian Niccol continues turnaround efforts


Starbucks CEO Brian Niccol is doubling down on his push to return staff to the office.

On Monday, CEO Brian Niccol said in a note to staff that its support partners and people managers will be required to come to the office four days a week starting in late September.

Starbucks is also broadening expectations for which workers need to relocate to its North American hubs in either Seattle or Toronto, and those workers now expected to be in-person in either location will have a year to make the move. The company said it will also offer buyouts to employees that don’t plan to meet these expectations as part of this broader mandate.

“We are reestablishing our in-office culture because we do our best work when we’re together,” CEO Brian Niccol wrote. “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.”

In April, the company reported US same-store sales fell for the fifth-straight quarter to start 2025, a result Niccol called “disappointing.”

Starbucks’ stock is up just 2% year-to-date, compared to the S&P 500’s nearly 7% gain.

The company is navigating a major brand overhaul amid an environment in which consumer spending has been under pressure. Niccol joined the company last year in a high-profile move from Chipotle, where he’d served as CEO since 2018.

Citi analyst Jon Tower of wrote in a recent note to clients that he’s eager to hear more about “updates on timeline and potential costs related to remodels and progress on menu simplification,” in the company’s upcoming quarterly report.

The company disclosed in a filing earlier this month top executives could earn up to $6 million in stock grants if it meets cost-cutting reduction goals.

“We’re driving significant change across the company while staying true to our core values,” Niccol wrote Monday.

“We know we’re asking a lot of every partner as we work to turn the business around. And we understand that the updated in-office culture may not work for everyone.”

SEATTLE, WASHINGTON - OCTOBER 26: The Starbucks Corporate Office Headquarters HQ on October 26, 2023 in Seattle, Washington. (Photo by Kirby Lee/Getty Images)
The Starbucks Corporate Office Headquarters HQ on October 26, 2023 in Seattle, Washington. (Photo by Kirby Lee/Getty Images) · Kirby Lee via Getty Images

Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.

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