Starbucks Expands In-Office Work Mandate, Offers Exit Package For Reluctant Employees

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(RTTNews) - Starbucks is tightening its return-to-office policy, requiring corporate employees to be on-site four days a week starting in October.

The move, announced Monday by CEO Laxman Narasimhan in a letter to employees, is part of a broader push to strengthen in-person collaboration and accelerate the company's ongoing business transformation.

Acknowledging that not everyone may agree with the new requirement, Starbucks is offering a one-time voluntary exit package, including a cash payment, for those who choose to leave rather than increase their in-office presence.

"We've listened and thought carefully," Narasimhan wrote. "But as a company built on human connection, and given the scale of the turnaround ahead, we believe this is the right path."

In addition to the new attendance mandate, all corporate "people leaders" must relocate to Seattle or Toronto within the next 12 months a shift from the company's previous requirement, which applied only to vice presidents. Employees in non-leadership roles will not be required to relocate, though all future hires and internal transfers will need to be based in one of the two cities.

The decision comes amid broader corporate efforts to reduce remote work. Major employers like Amazon, Google, and Walmart have also mandated more frequent office attendance, citing the benefits of collaboration and productivity.

The policy change follows recent cost-cutting measures at Starbucks, including the elimination of 1,100 jobs earlier this year. Shares of the company fell about 2 percent Monday as analysts questioned the effectiveness of the company's turnaround strategy, which has so far focused on simplifying operations and improving service speed.

Starbucks has around 16,000 corporate employees globally, including warehouse and roasting facility staff.