Starbucks CEO Brian Niccol, who earlier flew nearly 1,600 km between his home in California and the company’s Seattle office, has now bought a house in Seattle, reported Fortune. This change comes as the coffee chain takes a stricter approach to getting employees back to the office.
“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,” said Niccol in the letter as quoted by Fortune.
When Niccol was appointed as Starbucks CEO in August last year, the company agreed to a special travel plan. He was allowed to commute between California and Seattle using a corporate jet, as long as he worked from the Seattle office at least three days a week. This matched the company’s hybrid work policy at the time, which allowed some flexibility.
It wasn’t the first time Niccol had followed such a routine. When he became CEO of Chipotle in 2018, he had a similar long-distance travel arrangement. He even moved the company’s head office from Denver to California to match his location.
But now things are changing at Starbucks. Niccol has told staff that from October, all corporate employees must be in the office at least four days a week.
This is part of the “Back to Starbucks” plan launched to help the company grow again. In the past year, Starbucks has seen falling sales, internal changes, and even protests related to its brand.
To further push this return to in-person work, Starbucks has said that managers and team leaders who are working remotely from the Starbucks Support Center have 12 months to move to either Seattle or Toronto. This rule comes after a February decision that already asked the company’s vice presidents to shift to one of these locations.
However, Starbucks also understands that not everyone can make such a big move. So, the company is offering a one-time voluntary exit plan with a cash payout to employees who choose to leave instead.
His move not only brings him closer to the company’s main office but also reduces the environmental impact of his regular flights.
His previous travel was not just long, it was also costly for the environment. According to the European Environment Agency, a private jet emits around 2.5 kilograms of carbon dioxide (CO2) for every kilometre flown.
A single round trip between California and Seattle, roughly 3,200 km, would release up to 8,000 kilograms of CO2. If Niccol made this trip three times a week, the total yearly emission could have been around 1,152 metric tonnes. If he traveled for five days a week, that number would jump to 1,920 metric tonnes.
Niccol’s appointment had already made news due to the size of his compensation. Starbucks offered him a total package of about $113 million, making him one of the highest-paid corporate leaders. He took over from Laxman Narasimhan, the former chairman and CEO.
– Ends