Latest news with #Niccol
Business Insider
4 days ago
- Business
- Business Insider
Starbucks corporate workers respond to the latest RTO mandate: 'This is the wrong direction. Please stop.'
Employees at Starbucks' corporate headquarters who are unhappy about CEO Brian Niccol's strict return-to-office mandate are making their displeasure known. On Friday, a flyer created by "Partners for the Preservation of Starbucks Culture, Mission, and Values" was taped inside an elevator at the corporate offices in Seattle. Featuring two photos of Niccol and a list of grievances, the flyer calls out Niccol's leadership, recent cost-cutting bonuses for executives, the RTO order, and broader changes in the work environment, a photo shows. "Getting ' Back to Starbucks ' isn't just about comfy chairs. It's about our Culture, Values, Mission, and how we treat people and the environment," it reads. "This is the wrong direction. Please stop." It appeared several days after Niccol sent a firm message to the company's corporate workers on Monday: Come back to the office four days a week or leave. Some "people leaders" who manage teams had their remote status eliminated, requiring them to relocate to Seattle or Toronto. According to internal communications viewed by Business Insider, Starbucks offered voluntary buyout packages of between $20,000 and $100,000, depending on title, for those who would rather leave the company. Four Starbucks corporate employees told Business Insider they're worried the strict return-to-office mandate contributes to an erosion of the company's "partner first" culture. A Starbucks spokesperson told Business Insider that the return-to-office mandate is about enhancing the company's culture, not further reducing head count. Starbucks formally laid off 1,100 corporate workers in February. "I think for those of us who have been around for a while, we see a culture shift happening in the organization where our public face doesn't necessarily match our private face anymore," one Starbucks veteran, who has worked for the company for nearly 20 years, told Business Insider. The latest RTO notices surprised the corporate Starbucks workers who spoke to Business Insider, and prompted others to immediately begin looking for new roles and sharing their concerns on social media. "As Starbucks chooses to require all people-leaders to relocate to Seattle, I am placed in a position where I must consider exploring other opportunities and would appreciate your support," Kristina Lawson, a Starbucks program manager who has been with the company for more than 18 years, wrote in a post on LinkedIn. Lawson did not respond to a request for comment from Business Insider. Corporate America is in the middle of a return-to-office showdown. Business Insider has reported that major companies, from Amazon to Zoom, have implemented various RTO mandates. Each company's approach has been different, with some incentivizing employees to work in-office with perks like raises, and others threatening to fire workers if they don't comply. Business Insider's Aki Ito reported in May that some suspect that strict RTO mandates are actually a way to get employees to quit — and they may be right, because voluntary resignations remove the company's need to pay severance or health insurance, resulting in a less expensive reduction in force than traditional layoffs. "We are reestablishing our in-office culture because we do our best work when we're together," Niccol said in a statement to BI. "We share ideas more effectively, creatively solve hard problems, and move much faster." Niccol's statement continued: "We're driving significant change across the company while staying true to our core values. 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." Niccol, who joined the company from Chipotle last September, has been leading the coffee giant through a "Back to Starbucks" revitalization initiative. He is attempting to reverse slumping sales, improve the customer experience, and address problems with its mobile ordering system and long wait times. A recent filing with the Securities and Exchange Commission shows Starbucks is offering top executives up to $6 million in stock bonuses if the company meets its cost-reduction goals by the end of fiscal 2027. One Seattle-based Starbucks employee who has worked in corporate operations for the company for over seven years told BI that several other anonymous flyers have been posted around the building with complaints about changes Niccol is promoting, and that some employees have voiced concern in open Slack channels. While they won't be personally affected by the RTO order, the employee said they worry about how the company will operate if some of the most passionate partners decide to leave. "There are some remote partners that have niche knowledge and skills that will leave massive Kool-Aid man-sized holes in the wall if they decide to take the exit payment," the employee said. Update: Jul 20, 2025 — This story has been updated to include details of other employee actions cited by a Seattle-based Starbucks employee.
Business Insider
4 days ago
- Business
- Business Insider
Starbucks corporate workers protest the latest RTO mandate: 'This is the wrong direction. Please stop.'
Employees at Starbucks' corporate headquarters who are unhappy about CEO Brian Niccol's strict return-to-office mandate are making their displeasure known. On Friday, a flyer created by "Partners for the Preservation of Starbucks Culture, Mission, and Values" was taped inside an elevator at the corporate offices in Seattle. Featuring two photos of Niccol and a list of grievances, the flyer calls out Niccol's leadership, recent cost-cutting bonuses for executives, the RTO order, and broader changes in the work environment, a photo shows. "Getting ' Back to Starbucks ' isn't just about comfy chairs. It's about our Culture, Values, Mission, and how we treat people and the environment," it reads. "This is the wrong direction. Please stop." It appeared several days after Niccol sent a firm message to the company's corporate workers on Monday: Come back to the office four days a week or leave. Some "people leaders" who manage teams had their remote status eliminated, requiring them to relocate to Seattle or Toronto. According to internal communications viewed by Business Insider, Starbucks offered voluntary buyout packages of between $20,000 and $100,000, depending on title, for those who would rather leave the company. Four Starbucks corporate employees told Business Insider they're worried the strict return-to-office mandate contributes to an erosion of the company's "partner first" culture. A Starbucks spokesperson told Business Insider that the return-to-office mandate is about enhancing the company's culture, not further reducing head count. Starbucks formally laid off 1,100 corporate workers in February. "I think for those of us who have been around for a while, we see a culture shift happening in the organization where our public face doesn't necessarily match our private face anymore," one Starbucks veteran, who has worked for the company for nearly 20 years, told Business Insider. The latest RTO notices surprised the corporate Starbucks workers who spoke to Business Insider, and prompted others to immediately begin looking for new roles and sharing their concerns on social media. "As Starbucks chooses to require all people-leaders to relocate to Seattle, I am placed in a position where I must consider exploring other opportunities and would appreciate your support," Kristina Lawson, a Starbucks program manager who has been with the company for more than 18 years, wrote in a post on LinkedIn. Lawson did not respond to a request for comment from Business Insider. Corporate America is in the middle of a return-to-office showdown. Business Insider has reported that major companies, from Amazon to Zoom, have implemented various RTO mandates. Each company's approach has been different, with some incentivizing employees to work in-office with perks like raises, and others threatening to fire workers if they don't comply. Business Insider's Aki Ito reported in May that some suspect that strict RTO mandates are actually a way to get employees to quit — and they may be right, because voluntary resignations remove the company's need to pay severance or health insurance, resulting in a less expensive reduction in force than traditional layoffs. "We are reestablishing our in-office culture because we do our best work when we're together," Niccol said in a statement to BI. "We share ideas more effectively, creatively solve hard problems, and move much faster." Niccol's statement continued: "We're driving significant change across the company while staying true to our core values. 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." Niccol, who joined the company from Chipotle last September, has been leading the coffee giant through a "Back to Starbucks" revitalization initiative. He is attempting to reverse slumping sales, improve the customer experience, and address problems with its mobile ordering system and long wait times. A recent filing with the Securities and Exchange Commission shows Starbucks is offering top executives up to $6 million in stock bonuses if the company meets its cost-reduction goals by the end of fiscal 2027. One Seattle-based Starbucks employee who has worked in corporate operations for the company for over seven years told BI that in-office actions have started springing up to protest the changes Niccol is promoting. While they won't be personally affected by the RTO order, the employee said they worry about how the company will operate if some of the most passionate partners decide to leave. "There are some remote partners that have niche knowledge and skills that will leave massive Kool-Aid man-sized holes in the wall if they decide to take the exit payment," the employee said.
News18
7 days ago
- Business
- News18
Starbucks CEO Ends 1600 km Commute, Moves To Seattle as Hybrid Rules Tighten
Last Updated: Starbucks CEO Brian Niccol, known for his 1600 km commute, bought a home in Seattle. Starbucks mandates a four-day in-office workweek. Starbucks CEO Brian Niccol, who got viral for commuting 1600 km thrice a week from his home in California to the office in Seattle by a corporate airplane, has now decided to settle in Seattle near the office. According to a Fortune report, Niccol bought a home in Seattle, aligning with the popular coffee-chain franchise's policy shift to traditional office setup. Earlier, Starbucks told its employees that it would be mandatory for its staff to work at least four days a week in the office from the new fiscal year. In the fresh communique, the company will shift from a three-day to a minimum four-day in-office workweek, with common days set as Monday through Thursday. This applies to its Seattle and Toronto support centers, as well as North America regional offices. The new orders will come into effect from the new fiscal year, as noted by Starbucks CEO Brian Niccol in a blog post. In a notable expansion of its earlier policy, Starbucks has also directed all Support Center people managers to relocate to either Seattle or Toronto within the next 12 months. This follows the company's earlier February directive requiring vice presidents and above to do the same. While individual contributors aren't being asked to relocate, future hires and lateral moves will require employees to be based in Seattle or Toronto. Starbucks is allowing its staff to quit if they aren't willing to follow the new requirements. Brian wrote in the post that 'to support those who decide to 'opt out", the company is offering a one-time voluntary exit program with a cash payment for partners. Brain's 1600 km Commute Was A Hot Topic After His Appointment When Brain Niccol had been appointed as Starbucks CEO after replacing Laxman Narasimhan, he soon became a viral topic over his 1600 km commute from home to office thrice in a week. Starbucks' quarterly earnings of Q2 FY2025 showed the rising pressure on margins and profits. Its consolidated net revenue rose 2% year-on-year to $8.8 billion, or 3% on a constant currency basis. However, global comparable store sales declined 1%, mainly due to a 2% drop in transactions, partially offset by a 1% increase in average ticket size. In North America, comparable store sales dropped 1%, with a 4% decline in transactions. The U.S. segment performed slightly worse with a 2% drop in comparable store sales. Internationally, sales grew 2%, while China's performance remained flat—showing a 4% rise in transactions but a 4% decline in average ticket size. view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Business Insider
17-07-2025
- Business
- Business Insider
Starbucks Stock (NASDAQ:SBUX) Notches Up on Niccol's Lengths to Return to Office
The return-to-office (RTO) mandate is sweeping through corporate America as it reconsiders the whole idea of letting employees work remotely. Why that was suddenly a problem is a point of debate that usually brings up expensive office park locations going woefully underused. But give coffee giant Starbucks' (SBUX) CEO Brian Niccol credit; he is going to some lengths to be part of the RTO push himself. That was enough for investors to put a little more into the stock, which increased fractionally in Wednesday afternoon's trading. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. We already heard, back on Monday, about the RTO mandate, complete with a one-time cash payout for those who just could not take the idea of going back to work at Starbucks' offices. But more recently, we heard about what Brian Niccol himself was doing in response to that RTO release. When Niccol was hired back in August, he was not required to relocate to Seattle, as most 'people leader' employees are. Starbucks offered help to set up an office near Niccol's home of Newport Beach, California, as well as the use of a corporate jet for commuting. But instead, Niccol bought a home in Seattle, and thus, physically shows up at the Starbucks offices on a fairly regular basis. Another Union Shop to Deal With Meanwhile, in Arizona, Starbucks has another union shop to deal with. The Ina and Oracle, Casas Adobes location has voted unanimously to become a union shop under the Starbucks Workers United banner. This brings the total of union Starbucks locations in Arizona to 11, and the total in Tucson to three. It also brings the total number to over 600 across 45 states. Starbucks, for its part, offered a statement that sounded something like support, but made clear it was already delivering solid results. Starbucks offered a statement saying it would '…continue to work together to make Starbucks the best job in retail. Hourly partners receive pay above industry average and best-in-class benefits, together worth an average of $30 per hour for those who work at least 20 hours per week.' Is Starbucks Stock a Good Buy? Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 13 Buys, 11 Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 23.14% rally in its share price over the past year, the average SBUX price target of $95.64 per share implies 3.34% upside potential.
Miami Herald
16-07-2025
- Business
- Miami Herald
Starbucks CEO sends a stern message to loyal employees
Between what seems like endless waves of layoffs at one large company after another and the ongoing threat of AI eliminating jobs, it's a scary time for employees. In tech, just about every big name has done layoffs so far this year, including Microsoft, Google, Meta, and Intel. Some, such as Microsoft, have done multiple rounds of layoffs. Don't miss the move: Subscribe to TheStreet's free daily newsletter The retail world has also seen more of the same, with Walmart, Starbucks, Amazon, and Wayfair just a few of the names that have let people go this year. Related: Starbucks makes a move to battle slowing customer interest For those lucky enough to still be employed, they may be facing a new mandate from their employer, a requirement that has grown more popular in the years since the pandemic. While many moved to working from home due to Covid's outbreak in 2020, some have continued to do so ever since, finding themselves able to accomplish their tasks in a more productive manner without the discomfort of a daily commute. But a trend of going back to the office has emerged in recent years, with most major companies asking that employees either come back on a hybrid schedule or stop working from home altogether and come back to the office. Now Starbucks (SBUX) is the latest to make that move. In a news blog on the company's official website posted on July 14, CEO Brian Niccol unveiled the latest phase of his "Back to Starbucks" plan: requiring more people to come back to work in person. More Retail: Huge retail chain suddenly closing hundreds of storesMajor retailer scores huge benefit from Joann bankruptcyHome Depot, Target, Ulta and more strike back at retail crime "We will shift from required three-days in office to minimum of four-days in office," the notice reads. "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." Niccol says that this requirement will begin in the new fiscal year. Another change mentioned is that Support Center people leaders who previously worked remotely will now be asked to relocate to Seattle or Toronto within 12 months. Related: Starbucks has a wild new drink joining its menu While individual contributors are not being asked to move, Niccol also notes that future hiring for these roles will be done in Seattle and Toronto only. "We understand not everyone will agree with this approach," the message says. "We've listened and thought carefully. But as a company built on human connection, and given the scale of the turnaround ahead, we believe this is the right path for Starbucks." For those that don't agree with the change, Starbucks has a solution for that too: it will pay you to leave. "If you decide you want to leave Starbucks for any reason, we respect that. To support those who decide to 'opt out,' we're offering a one-time voluntary exit program with a cash payment for partners who make this choice. Sara Kelly will share more details soon," the message says. Ever since Niccol joined the company in September 2024, the CEO has been making aggressive moves to rehabilitate the brand. These have included a simpler menu, handwritten messages on cups, ditching the non-dairy milk upcharge, the return of the condiment bar, and free refills of hot and iced brewed coffee and tea during a visit. All the changes are an effort to make the coffeehouse feel warmer and more inviting and to encourage customers to gather there - a sentiment that seems to be reflected in Niccol's return-to-office mandate as well. Related: Starbucks considers massive menu change for unlikely reason "We are reestablishing our in-office culture because we do our best work when we're together," Niccol said in his blog post. "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." This is not his first time addressing the remote work issue. In October, he told employees they could be fired if they didn't come back to the office three days a week. Ironically, Niccol himself is not bound by the same rules he's asking his employees to honor. "In a recent filing to the U.S. Securities and Exchange Commission, Starbucks revealed that Niccol 'will not be required to relocate' to the company's headquarters in Seattle, Washington, and will instead commute from his home in Newport Beach, California, to the office via private jet to perform his 'duties and responsibilities,'" TheStreet's Patricia Battle reports. Related: Starbucks CEO admits the struggling chain made a major mistake The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
