Why Starbucks wants its leaders in Seattle or Toronto and what it means for US remote work
Starbucks has announced a significant change to its remote work policy for corporate employees, requiring many of its people leaders to be based in either Seattle or Toronto within 12 months. The Seattle-based company is increasing the number of days corporate employees must work in the office from three to four days a week starting early October, signalling a shift away from remote working arrangements.Brian Niccol, Starbucks chairman and CEO, addressed employees in a letter posted on Monday, stating the company’s intention to reestablish its in-office culture. Niccol wrote, “We do our best work when we’re together. We share ideas more effectively, creatively solve hard problems, and move much faster,” as quoted by the Associated Press. The move comes amid wider changes in the US workplace, where several major employers have been calling employees back to company sites.Detailed requirements for corporate leadersStarbucks’ new policy specifically requires all corporate “people leaders” to relocate to either Seattle or Toronto within the next year. This expands on a previous February mandate that only required vice presidents to move to these cities. Individual employees reporting to these leaders will not be required to relocate, but all future hiring and lateral moves will require employees to be based in one of these two locations.The company has approximately 16,000 corporate support employees worldwide, including roles such as coffee roasters and warehouse staff, though Starbucks spokeswoman Lori Torgerson did not provide exact figures for how many corporate employees currently work remotely or as “people leaders,” as reported by the Associated Press.Niccol himself was initially exempt from relocation when he was hired last August, with Starbucks offering support for an office near his Newport Beach, California home and use of a corporate jet to commute to Seattle. However, he has since purchased a home in Seattle and regularly works from the company’s headquarters, Torgerson added.Implications for US remote work trendsThe Starbucks decision reflects a broader trend in the US corporate sector, where companies including Amazon, AT&T, and the federal government have tightened remote work policies, often requiring employees to return to the office five days a week. These moves come as many workers, having grown accustomed to working from home during the Covid-19 pandemic, face a shift back to in-person work.Employees affected by the new Starbucks policy who choose not to relocate will be eligible for a one-time voluntary exit programme that includes a cash payment, the company confirmed. This signals a clear stance on prioritising in-office collaboration and presence, as Starbucks aims to foster faster decision-making and greater creativity within its teams.The company’s updated remote work policy for corporate staff and relocation requirements for leaders may influence workplace norms across the US, highlighting ongoing debates about the future of work and the balance between remote flexibility and in-person collaboration.TOI Education is on WhatsApp now. Follow us here.
