Retail coffee chain Starbucks (SBUX) has given its corporate employees an ultimatum: return to the office four days a week starting this October or take a payout from the company and work elsewhere.
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For workers who would prefer to leave the company instead of heading back to the office for an additional day each, Starbucks says that it is offering a “one-time voluntary exit program with a cash payment.” CEO Brian Niccol outlined the ultimatum in a letter written to all corporate staff at the Seattle-based company.
“We understand not everyone will agree with this approach,” wrote Niccol in the letter. “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.”
Turnaround Efforts
Under Niccol’s leadership, Starbucks is undertaking an aggressive turnaround plan to reverse its slumping sales in the U.S. and in key markets around the world such as China. Niccol, who took the helm of the coffee chain last year, is focusing on simplifying Starbucks’ menu, improving the coffee shop experience, and reducing service times to four minutes per drink.
The turnaround has already impacted Starbucks’ corporate staff. Last October, Starbucks told workers that they were at risk of being fired if they didn’t return to the office three days each week. In February of this year, the company cut 1,100 jobs and said that it wouldn’t fill hundreds of open positions. Starbucks had about 16,000 employees who work outside of its coffee shop locations at the end of 2024.
Not Alone
Starbucks is one of many U.S.-based companies that is pushing its corporate workers to relocate and spend more time at the office. Last year, Walmart (WMT) told hundreds of corporate employees that they have to relocate to the company’s global headquarters in Bentonville, Arkansas.
This spring, Google parent company Alphabet (GOOGL) told remote workers that they have to come back to the office three days per week or risk losing their job. So far in 2025, SBUX stock has gained 4%. The company’s share price is up 30% in the last 12 months.
Is SBUX Stock a Buy?
The stock of Starbucks has a consensus Moderate Buy rating among 24 Wall Street analysts. That rating is based on 13 Buy and 11 Hold recommendations issued in the last three months. The average SBUX price target of $96.14 implies 1.26% upside from current levels.
