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Starbucks offers cash to employees who require corporate staff to be in the office at least four days a week and decide to quit instead.
On Monday, the world’s largest coffee house chain increased the number of days employees need from 3 to 4 in their offices.
The mission from CEO Brian Nicole shows how some U.S. companies are retreating from the liberal remote working policies adopted during the pandemic. Amazon, which is headquartered in Seattle, like Starbucks, has ordered staff members to stay in their offices five days a week this year.
All Starbucks corporate managers in the direct report must work from their Seattle or Canadian headquarters in Toronto within 12 months, the company said.
In a message to employees, Nicole said: “We know we want a lot of all the partners working to turn our business around, and we understand that an updated office culture may not work for everyone.”
“To support those who have decided to “opt out,” we offer a one-time, voluntary exit program with cash payments for partners making this choice,” he added.
The majority of Starbucks’ over 350,000 employees work within coffee houses. Executives plan to hire more baristas to improve customer service and reverse long-term slides in sales.
Less than 20,000 people are employed in corporate support, store development, roasting, manufacturing, warehouse and distribution, according to the annual report.
In February, Starbucks cut 1,100 office jobs and eliminated hundreds of open, unopened positions. A vice president or higher status company leader who worked remotely had to work in an office in Seattle or Toronto. In Monday’s announcement, the requirements were applied to all corporate managers.
Nicole joined Starbucks last year on California-based Chipotle’s Mexican grill from Newport Beach, California, with the goal of turning the business of flagging coffee chains. His employment agreement promised him a “small remote office” in Newport Beach and said there was no need to move to Seattle.
Starbucks said Nicole has an office and a home in Seattle.
Nicole writes: “We are reestablishing the culture in our office because we do our best when we come together. We solve ideas more effectively, creatively, move much faster. And personally, it helps us build and strengthen our culture.