Starbucks Return To Work Conflict Of Interest: Employees Told Four Days In Office As CEO Works From Home

Coffee giant Starbucks Corporation (NASDAQ:SBUX) is amending its return-to-work policy for corporate employees, which could create a significant conflict of interest given the treatment afforded to new CEO Brian Niccol.

What Happened: As Starbucks seeks to complete a turnaround from declining sales, the company is focusing on employees working together in stores and offices worldwide.

Niccol outlined the company's new policy this week that will require corporate employees and managers to work in-person four days a week, Monday through Thursday. The policy upgrades and existing three-day in-person work requirement.

"To give partners time to adjust, this expectation will begin with the new fiscal year," Niccol said in a message to employees.

Corporate employees and managers will be required to work in Starbucks’ corporate offices in Seattle and Toronto, or regional hubs across North America, starting in January 2026, reported the New York Post. The new policy also requires all managers at corporate locations to relocate to Seattle, Toronto, or other cities with regional offices within the next 12 months.

"We'll share more details before October, including our plans to ensure everyone has an assigned dedicated desk."

The four-day in-person work requirement is part of the company's "Back to Starbucks" turnaround strategy launched by Niccol.

"We are establishing 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."

The company will offer one-time exit packages to employees who refuse to comply with the new policy.

"If you decide you want to leave Starbucks for any reason, we respect that."

Niccol said the new policy is "the right path for Starbucks."

Read Also: Starbucks Attracts $10 Billion In Bids For China Unit Amid Rising Competition

Why It's Important: As the new policy is announced, questions remain on where Niccol completes his daily work and how much of his time he spends working in-person versus remotely.

Niccol, who was hired away from Chipotle Mexican Grill in 2024, has a main residence in Newport Beach, California.

At the time of his hiring, it was reported that Niccol would be permitted to continue residing in Newport Beach.

Starbucks said Niccol's "default" is residing in Seattle when he isn't traveling. The company declined to comment on Niccol working from California when asked by the New York Post.

The company previously said that Niccol would spend the majority of his time in Seattle or visiting stores and offices globally.

"His schedule will exceed the hybrid work guidelines and workplace expectations we have for all partners," a company spokesperson previously said.

With the hybrid work guidelines now meaning four days in the office and one at home, it remains unclear if Niccol is still exceeding those requirements.

Niccol received a favorable compensation package for joining the coffee giant, with reports saying he made $96 million in his first four months with the company from wages, a sign-on bonus and stock awards.

The annual compensation of $113 million makes Niccol one of the highest-paid CEOs in the country.

The Starbucks CEO also has a remote office near his home and a corporate jet at his disposal, along with other perks.

Starbucks has been in the middle of a turnaround as it faces declining sales, labor challenges from unions, increased competition, and concerns over higher inflation.

The coffee chain will likely be asked about Niccol's work locations in the coming months and could face increased employee pushback without clarity, or if it is true that the CEO is exempt from following the new policy.

SBUX Price Action: Starbucks stock trades at $92.48 on Tuesday versus a 52-week trading range of $71.55 to $117.46. The stock is up 0.3% year-to-date in 2025.

Read Next:

• Starbucks Analysts Mixed On New CEO Brian Niccol, Who Led CMG Stock 650% Higher In 6 Years: ‘Starbucks Is No Chipotle’

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