Latest news with #BrianNiccol
The Guardian
an hour ago
- Business
- The Guardian
Starbucks tells corporate staff in US and Canada to work in office at least four days a week
Starbucks has ordered its corporate staff to work from the office at least four days a week from late September and is offering cash payments to those who choose to quit instead. Brian Niccol, the chief executive of the Seattle-headquartered coffee chain, said many of its employees would be required to work in the office for a minimum of four days a week, up from three, from Monday to Thursday. The edict will apply to its Seattle and Toronto support centres and its regional offices in North America. The change does not apply to the UK, where Starbucks has its head office in Chiswick, west London. 'We do our best work when we're together,' Niccol said in a message to employees, referred to as 'partners', on the company's website about 're-establishing an in-office culture'. 'We want leaders and people managers to be physically present with their teams.' He added: '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.' Starbucks has 16,000 corporate support employees worldwide, including coffee roasters and warehouse staff. It employs about 360,000 people worldwide, including 5,600 in the UK, most of whom work in its cafes. The four-day office policy will come into effect on 29 September. Niccol, who has been in the job for almost a year, has said he wants to take Starbucks back to its coffeehouse roots by improving customers' experience in its cafes and reducing reliance on mobile and takeaway orders. He said: '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. 'To support those who decide to 'opt out', we're offering a one-time voluntary exit programme with a cash payment for partners who make this choice.' The company did not state the size of the sum. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion A string of businesses in the US and the UK – such as Amazon and HSBC – have ordered their staff back to the office for the majority of the working week. On Tuesday, a survey showed that a fear of having to return to their office desks is having an impact on workers' wellbeing. In February, Starbucks asked its vice-presidents who were working remotely to move to Seattle or Toronto. It is now extending this requirement to all support centre 'people leaders', who are expected to relocate within 12 months. In its previous announcement, Starbucks set out plans to lay off 1,100 corporate employees and close several hundred open or vacant job positions, the biggest job cuts in its history, in order to reduce costs as it struggled with rising inflation and economic uncertainty. Niccol faced environmental criticism last year for his 1,000-mile commute to work in the office three days a week. The company allowed him to travel in from his home in Newport Beach, California, to its head office in Seattle via a private jet instead of relocating. Since then, he has bought a home in Seattle and is frequently seen at the company's headquarters, a spokesperson told Associated Press.
Bloomberg
5 hours ago
- Business
- Bloomberg
How Starbucks Is Engineering a Turnaround With Warm Vibes and Cold Foams
By Brian Niccol is standing in the corner of a newly renovated Starbucks in Seattle on an afternoon in mid-April. Baristas are making iced cherry chai lattes and mocha Frappuccinos with whipped cream, and warming egg bites and croissants. Customers sit in plush mustard-colored chairs and on cushioned benches in an olive tone, surrounded by wood-paneled walls. 'I like it,' says Niccol, who took over as chief executive officer in September. 'I like the furniture. I like the lighting. I like the music.' Mostly he likes the vibe. People camping out, doing homework, chatting with friends. There's a guy preparing a tax return. 'Every seat is full,' Niccol says. 'That's what we want. What we should be able to do is have spaces for people that, if you want to socialize, you can socialize. If you want a moment for yourself, you have a moment for yourself.' He asks me what I think is the best seat in the house, and I tell him I'd tried a few as I alternated between grabbing a bite and working on my laptop. 'I want a great seat for whatever occasion you're having. If you want to eat, that's probably the best seat,' he says, pointing to the cushioned bench.
Newsweek
11 hours ago
- Business
- Newsweek
Starbucks Gives Workers an Ultimatum on Returning to Office
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Starbucks CEO Brian Niccol has issued strict new orders for corporate staff as part of his bid toward "reestablishing our in-office culture." Niccol, who took the helm of the coffee chain last September, on Monday ordered some remote staff to relocate to one of two cities. He also said that corporate employees are required to be in the office at least four days per week. Newsweek reached out to Starbucks and the Starbucks Workers United union via email for comment. Why It Matters Starbucks is the world's largest coffee shop chain, according to Statista, with the brand owning branches on every continent except Antarctica. According to figures released last summer, there are more than 38,000 stores worldwide. However, the chain has faced struggles on various fronts since the COVID-19 pandemic and a series of worker strikes. A difficult 2024 forced the brand to close several locations in the United States this year. Niccol is planning to revamp the company, introducing a new dress code and reducing the menu in the hope of improving customer service. Niccol has dubbed his mission the "Back to Starbucks plan" as he seeks a return to what originally made the company so successful. File photo of a Starbucks coffee cup sitting next to a laptop. File photo of a Starbucks coffee cup sitting next to a laptop. Getty Images However, some employees are unhappy about his changes. In May, more than 1,000 Starbucks baristas went on strike over an alleged corporate failure to "staff our stores properly, give guaranteed hours to workers, pay us a living wage, or provide stipends to pay for this arbitrary dress code." What To Know Niccol announced the new company rules in an open letter to employees on Monday, which was published on the brand's website. "As we continue to execute our Back to Starbucks plan and work to turn around the business, I want to share important updates on behalf of our executive leadership team – specifically regarding in-office expectations and work locations for our support partners and people managers," Niccol said. He gave relevant staff members a year to relocate to either Seattle or Toronto. Employees who are now required on-site four days each week have until "the new fiscal year" in October to prepare for the change. "We will shift from required three-days in office to minimum of four-days in office. Common days will be Monday, Tuesday, Wednesday and Thursday; this applies to our Seattle and Toronto Support Centers as well as North America regional offices," he said. "We want leaders and people managers to be physically present with their teams. In February we asked all vp+ leaders working remotely to begin relocating to Seattle or Toronto. We are now extending this requirement to all Support Center people leaders who will be expected to be based in Seattle or Toronto within 12 months." Starbucks CEO Brian Niccol, pictured before he took the role back in June 2015 in New York City. Starbucks CEO Brian Niccol, pictured before he took the role back in June 2015 in New York noted that individual employees working under those leaders would not be asked to relocate, but "hiring for future roles and lateral moves will require partners to be Seattle or Toronto based." Some "in-market roles" will remain subject to approval, he added. Affected workers who choose not to relocate will be eligible for a one-time voluntary exit program with a cash payment, according to the Associated Press. Fortune reported that Niccol himself was formerly remote, but has now bought a home in Seattle. When the CEO accepted the role last year, he was reportedly not required to relocate to Seattle because the company agreed to help him set up an office near his home in Newport Beach, California. Instead, he was offered the use of a corporate jet whenever he needed to commute to Starbucks headquarters, the publication added. What People Are Saying Starbucks CEO Brian Niccol, in an open letter on the company's website: "We are reestablishing our in-office culture because we do our best work when we're together. 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. "We know your work may take you outside the office, including visiting stores, meeting suppliers, or other business travel. You should continue to go where you need to go to be successful. We also know you sometimes need to step out or leave early to attend an event at your kid's school, see the doctor, or handle other personal matters. That's expected and completely okay. But the default for support partners should be working in person, in a Starbucks office, alongside your team and cross-functional partners." Starbucks Workers United, on X on Monday: "Short staffing, bad schedules, and low take-home pay are affecting Starbucks baristas across the country. Baristas in St Paul, MN spoke up to deliver a message to CEO Brian Niccol - the time for you to get back to work with us on fair union contracts is NOW!" The group shared footage of a barista making a speech from behind the counter; he demanded a "fair contract" for staff as customers applauded. What Happens Next It remains to be seen how the new office-based rules will be received by employees, some of whom must now uproot their lives to relocate to a new city. Starbucks Workers United has not publicly responded to Niccol's letter as of Tuesday morning. In the meantime, Niccol will continue trying to turn around Starbucks' fortunes, while the business community is likely to be watching to see whether his new office-day or city-location rules have a positive effect on the brand's trajectory.
Entrepreneur
11 hours ago
- Business
- Entrepreneur
Starbucks CEO Says Return to the Office or Take a Buyout
Starbucks CEO Brian Niccol is pushing for more in-person work, stating that it strengthens company culture. Starbucks is calling corporate employees back to the office four days a week and offering a buyout to those who'd rather leave the company instead. In a letter to employees on Monday, Starbucks CEO Brian Niccol said that at the beginning of the company's fiscal year in October, workers will be expected to be in the office four days a week, Monday through Thursday, up from the previous three-day requirement established in 2023. Related: 'We're Not Effective': Starbucks CEO Tells Corporate Employees to 'Own Whether or Not This Place Grows' However, he also offered a way out. Niccol noted that Starbucks corporate workers have the option for a "one-time voluntary exit program with a cash payment" of undisclosed value if they wish to leave the company in response to the return-to-office mandate. "The default for support partners should be working in person, in a Starbucks office, alongside your team and cross-functional partners," Niccol wrote. "We understand not everyone will agree with this approach." Niccol wrote that he has "listened" and "thought carefully" about the move to more in-person work, concluding that four days a week in the office is the best step for Starbucks going forward. Employees do their "best work" when they're together, and in-person work strengthens company culture, Niccol asserted. "As a company built on human connection, and given the scale of the turnaround ahead, we believe this is the right path for Starbucks," Niccol wrote. Starbucks CEO Brian Niccol. Photo byNiccol became Starbucks' CEO in September 2024 after spending six years leading Chipotle. Starbucks pays for Niccol to use a corporate jet to commute nearly 1,000 miles from his home in Newport Beach, California, to the company's headquarters in Seattle, Washington. His work schedule exceeds three days a week in the office, a Starbucks representative told CNBC in August. Under Niccol's leadership, Starbucks has embarked on a turnaround plan called "Back to Starbucks," designed to revitalize slumping sales and make the coffee chain more of a welcoming place for customers. Changes made so far include streamlining the menu by cutting 30% of it, aiming to make coffee in under four minutes, and offering a personalized touch by writing customers' names down on their cups. Related: 'Additional Human Touch': Starbucks Has a Turnaround Plan That Includes Buying 200,000 Sharpies. Here's Why. So far, sales are still dwindling. Starbucks' most recent financial results in April showed that global store sales declined 1% for the quarter ending on March 30 compared to the same period last year. In the U.S., store sales dropped 2% for the quarter. Starbucks still opened 213 net new stores in the quarter, ending the period with 40,789 global stores. More than 17,000 of those stores were located in the U.S. Starbucks shares were up over 2% year-to-date at the time of writing. The coffee chain had a market value of $106.85 billion. Join top CEOs, founders and operators at the Level Up conference to unlock strategies for scaling your business, boosting revenue and building sustainable success.
Time of India
13 hours ago
- Business
- Time of India
Why Starbucks wants its leaders in Seattle or Toronto and what it means for US remote work
Starbucks mandates relocation for corporate leaders as US remote work policies tighten. (AI Image) Starbucks has announced a significant change to its remote work policy for corporate employees, requiring many of its people leaders to be based in either Seattle or Toronto within 12 months. The Seattle-based company is increasing the number of days corporate employees must work in the office from three to four days a week starting early October, signalling a shift away from remote working arrangements. Brian Niccol, Starbucks chairman and CEO, addressed employees in a letter posted on Monday, stating the company's intention to reestablish its in-office culture. Niccol wrote, "We do our best work when we're together. We share ideas more effectively, creatively solve hard problems, and move much faster," as quoted by the Associated Press. The move comes amid wider changes in the US workplace, where several major employers have been calling employees back to company sites. Detailed requirements for corporate leaders Starbucks' new policy specifically requires all corporate "people leaders" to relocate to either Seattle or Toronto within the next year. This expands on a previous February mandate that only required vice presidents to move to these cities. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like An engineer reveals: One simple trick to get internet without a subscription Techno Mag Learn More Undo Individual employees reporting to these leaders will not be required to relocate, but all future hiring and lateral moves will require employees to be based in one of these two locations. The company has approximately 16,000 corporate support employees worldwide, including roles such as coffee roasters and warehouse staff, though Starbucks spokeswoman Lori Torgerson did not provide exact figures for how many corporate employees currently work remotely or as "people leaders," as reported by the Associated Press. Niccol himself was initially exempt from relocation when he was hired last August, with Starbucks offering support for an office near his Newport Beach, California home and use of a corporate jet to commute to Seattle. However, he has since purchased a home in Seattle and regularly works from the company's headquarters, Torgerson added. Implications for US remote work trends The Starbucks decision reflects a broader trend in the US corporate sector, where companies including Amazon, AT&T, and the federal government have tightened remote work policies, often requiring employees to return to the office five days a week. These moves come as many workers, having grown accustomed to working from home during the Covid-19 pandemic, face a shift back to in-person work. Employees affected by the new Starbucks policy who choose not to relocate will be eligible for a one-time voluntary exit programme that includes a cash payment, the company confirmed. This signals a clear stance on prioritising in-office collaboration and presence, as Starbucks aims to foster faster decision-making and greater creativity within its teams. The company's updated remote work policy for corporate staff and relocation requirements for leaders may influence workplace norms across the US, highlighting ongoing debates about the future of work and the balance between remote flexibility and in-person collaboration. TOI Education is on WhatsApp now. Follow us here . Ready to navigate global policies? Secure your overseas future. Get expert guidance now!
