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The Street
The Street
Patricia Battle

Starbucks CEO has tough words for employees on return to office

Starbucks  (SBUX) CEO Brian Niccol has a stern message for his employees, and many may not be too thrilled about it.

As companies across the country are starting to cut back on remote work, with some even forcing employees to return to working in the office five days a week, Niccol revealed in his first staff address as Starbucks CEO that there is “power in having everybody together,” according to a new report from Bloomberg.

Related: Amazon confirms fears about future of remote work with latest move

“My point of view is we should be together as much as possible,” said Niccol in 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.”

Starbucks has a mandate, which was enforced in January 2023, requiring corporate staff to work from the office three days a week, and that policy still stands.

Niccol also claimed during the address that in order for the company to succeed, employees should be working in person “more often than not.”

Starbucks CEO Brian Niccol plays his shot from the 14th tee during the Pro Am event prior to the Memorial Tournament presented by Workday at Muirfield Village Golf Club on June 05, 2024 in Dublin, Ohio. 

Dylan Buell/Getty Images

“This is not a game of tracking. This is a game of winning,” said Niccol. “I care about seeing everybody here succeed, and if success requires us being together more often than not, let’s be together more often.”

Starbucks CEO faces criticism over his remote work arrangements

Niccol, who was formerly CEO at Chipotle, officially began his role as CEO of Starbucks on Sept. 9 after being appointed to the position last month. He recently faced backlash on social media for his remote work accommodations.

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.”

More Labor:

The company also revealed that it will establish a “small remote office” for Niccol in California, which “will be maintained at the expense of the company.” In addition, he will also have the choice to hire an assistant for his remote office.

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After facing backlash, a Starbucks spokesperson later clarified in a statement to CBS News that Niccol will be following the company’s mandate, working from the office three days a week.

"While Brian will have an office in Southern California, his primary office and a majority of his time will be spent in our Seattle Support Center," said a Starbucks spokesperson in a statement to CBS MoneyWatch. "When he is not traveling for work, he will be in our Seattle office at least three days a week, in alignment with our hybrid work policies. He will also have a home in Seattle."

Remote work is expected to further dissipate in corporate America over the next few months. According to a recent survey by KPMG, which polled 1,300 global CEOs, 64% of CEOs predict a full return to the office by 2025.

Related: Veteran fund manager sees world of pain coming for stocks

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