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CEO Brian Niccol gets tough, demands Starbucks workers return to the office—or he’ll pay them to leave

Business & Finance

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July 14, 2025

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Fortune

Starbucks has announced a significant shift in its workplace policy, requiring corporate employees to work from the office at least four days a week starting in October 2025. This is an increase from the previous three-day requirement and is part of the company’s broader turnaround strategy. The new policy also mandates that all corporate “people leaders” must relocate to either Seattle or Toronto within 12 months, a move that could impact hundreds of employees. Those unwilling to relocate will be offered a voluntary exit package with a cash payout.

CEO Brian Niccol emphasized the importance of in-person collaboration, stating, “We are reestablishing 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’s decision reflects a growing trend among major employers to roll back remote work privileges granted during the pandemic.

The broader RTO wave

Starbucks is far from alone. Over the past two years, a wave of major corporations has issued similar return-to-office (RTO) mandates, signaling a decisive shift away from pandemic-era remote work flexibility. Here’s how some of the world’s largest companies have responded:

Tech and retail giants

  • Amazon: Announced in late 2024 that all employees would have to return to the office five days a week in the new year, ending hybrid and remote arrangements. The company cited improved collaboration and culture as key reasons.
  • Apple: Since 2022, Apple has required employees to be in the office at least three days a week, with CEO Tim Cook emphasizing the value of in-person teamwork.
  • Walmart: In May 2024, Walmart required remote employees to relocate to central hubs, including its Arkansas headquarters, or risk losing their jobs. Hybrid schedules are still permitted, but most work must be in-person.
  • Dell: In January 2025, Dell ended remote work for most employees, mandating five days a week in the office for those living near a company location.
  • Disney: In January 2023, CEO Bob Iger mandated a four-day in-office workweek for hybrid employees starting in March 2023, reversing earlier flexible policies.

Financial services

  • JPMorgan Chase: Managing directors have been required to work in person five days a week since 2023, with broader office mandates for other staff. The company is reportedly considering extending the five-day requirement to all employees.
  • Goldman Sachs: Has pushed for a full return to the office since 2022.
  • Citigroup: In 2025, Citigroup asked its U.S. workers who were previously remote to return to the office full-time, though some hybrid flexibility remains.

The end of remote work?

While some companies, like Airbnb and Spotify, continue to embrace flexible or fully remote models, the prevailing trend among the largest employers is a decisive move back to the office. Executives cite collaboration, culture, and productivity as primary drivers, even as some employees push back or seek new roles with more flexibility.

Still, for all these mandates by Fortune 500 CEOs, a research note from Capital Economics shows that office attendance as measured by keycard swipes was just 50% nationally as of the first half of 2025. Seattle and San Francisco were the only two major markets forecast to see office rents decline through 2029, the research firm also found.

“We understand not everyone will agree with this approach,” Niccol wrote in his letter to employees. “We’ve listened and thought carefully. 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.”

Starbucks did not respond to a request for comment.

For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. 

This story was originally featured on Fortune.com

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