Starbucks Delivers Stern Message to Corporate Employees: Here’s What It Means

According to The Street, Starbucks (SBUX) is intensifying its stance on its return-to-office policy, issuing a strict warning to corporate employees who fail to comply with the mandate. Starting in January last year, Starbucks required its corporate staff to work from the office at least three days a week. Last month, in his first address to employees, CEO Brian Niccol reiterated the importance of in-office work to ensure the company’s success, saying that employees need to be present “more often than not.”

“My point of view is we should be together as much as possible,” Niccol shared during his address. “You need to figure out where you need to be to get your job done, then do that. We’re all adults here.”

New Consequences for Non-Compliance

Now, Starbucks is reinforcing this policy with stricter measures. According to a memo obtained by Bloomberg, the company warns that employees who do not follow the mandate may face consequences “up to, and including, separation.” To ensure consistency, Starbucks plans to implement a “standardized process” that addresses non-compliance with these policies.

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The policy applies to about 3,500 corporate employees, though workers with disabilities—such as mental, physical, or sensory impairments—can request exemptions from the requirement.

Broader Corporate Return-to-Office Trends

Starbucks’ strict enforcement follows similar moves from other major corporations. Earlier this year, Dell (DELL) announced it would withhold promotions and job security for employees who did not meet a minimum of 39 office days per quarter. Despite this mandate, some Dell employees reportedly continued working remotely, citing a lack of promotion opportunities as a reason for non-compliance.

Niccol, who took on the role of Starbucks CEO on September 9, faced criticism on social media for not being required to relocate to Starbucks’ Seattle headquarters. His contract instead allows him to commute to Seattle via private jet to meet his in-office obligations, and he has a designated “small remote office” at his California home with the option to hire an assistant.

Return-to-Office Costs Rising for Employees

As more companies adopt return-to-office mandates, employees are facing additional expenses. A recent Yelp survey found that consumer interest in dry cleaning surged by 30% following the return-to-office movement in 2023, as employees sought professional wardrobes. Additionally, there was a 19% increase in interest in child care and daycare services, along with a 26% rise in interest in public transportation options, as workers adapt to the increased demand of commuting and office attendance.