Starbucks Mandates Four-Day Office Week, Offers Exit Payout for Non-Compliant Staff
Starbucks has announced that corporate employees in the US and Canada will be required to work from the office four days a week beginning this October – or accept a one-time payout if they choose to leave the company.
The new directive, which increases the in-office requirement from three to four days (Monday through Thursday), is part of a broader shift among major firms rolling back remote work flexibility introduced during the pandemic.
In a company-wide message, Starbucks CEO Laxman Narasimhan said the policy is designed to help the company deliver its “best work” as it navigates a challenging business environment marked by declining sales.
“We understand not everyone will agree with this approach,” 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 for Starbucks.”
The policy also includes relocation requirements for certain managers, who will need to move closer to Starbucks’ corporate hubs in Seattle or Toronto. Although Narasimhan was initially not required to live in Seattle – and a remote office was established near his California home – he has since purchased a residence in the city.
The changes are part of a wider corporate transformation strategy under Narasimhan, who became CEO in 2023. Since taking the helm, he has rolled back Starbucks’ open-door café policy that once allowed non-customers to use store spaces and restrooms freely. Earlier this year, the company also laid off 1,100 employees and is working on revamping its menu and store layouts.
Starbucks joins a growing list of companies tightening remote work policies. Tech giants like Amazon and major banks such as JPMorgan Chase have also scaled back flexible work options.
Despite these shifts, data from researchers at Stanford University, the University of Chicago, and the Instituto Tecnológico Autónomo de México suggest that working patterns have remained relatively stable. In the US, about one-third of employees who can work remotely are now fully back in the office, around 20% remain fully remote, and approximately 45% operate under a hybrid arrangement.
