As of October, Starbucks corporate employees are required to return to the office four days a week. This new policy will help increase cooperation and a greater productive spirit in the firm. As it prepares for a potential employee revolt, the coffee behemoth is headed off at the pass. They are implementing a voluntary one-time exit program with cash payments for anyone who opts to leave the company rather than return in-person under the new guidelines.
Starbucks had a released a similar order to its employees back in March. They threatened staff that if they didn’t make it back into the office three days a week, they would be fired. It’s not like CEO Brian Niccol hasn’t had time—he’s been in the job more than two months. His basis for making this potentially controversial decision is to turn around the company’s slumping sales in the U.S. market. Under his leadership, Starbucks has implemented various strategies aimed at streamlining operations and improving customer experience.
Starbucks has announced a 2% surge in its shares this year, raising its market cap to $108.7 billion. The company has focused on simplifying its menu and reducing service times to four minutes per drink, as part of Niccol’s comprehensive strategy for revitalization. On top of that, Starbucks had already laid off 1,100 workers in February and committed to not filling hundreds of vacancies.
Smartly, Starbucks didn’t make Niccol relocate to Starbucks’ corporate headquarters in Seattle when they hired him. Nonetheless, he does decide to be in-person with them whenever he’s not traveling. As a condition of his employment agreement, Starbucks promised to build a new compact remote headquarters in Newport Beach, California.
“We understand not everyone will agree with this approach,” said Brian Niccol. “We’ve listened and thought carefully. As a service-oriented company focused on building human connection, caring for our community comes first. With a massive turnaround that’s in store, we think this is the right direction for Starbucks.”
As employees continue to get adjusted to what’s to come down the pike, many more are considering their options, learning about them through the voluntary exit program. Going forward Starbucks envisions continuing to lead through collaboration, but they’ll be tested on their path to recovery, and on re-establishing leadership in the coffee wars.