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News » Starbucks CEO’s remote work decision sparks debate

Starbucks CEO’s remote work decision sparks debate

Photo from Starbucks

CALIFORNIA, UNITED STATES — Starbucks’ new CEO Brian Niccol has stirred controversy with his decision to work remotely from California instead of the company’s Seattle headquarters. 

Niccol, who previously led Chipotle Mexican Grill, moved its headquarters to Newport Beach during his tenure. 

Now, he has convinced Starbucks to allow him to set up a “small remote office” in the same location, diverging sharply from the approach of his predecessor, Laxman Narasimhan, who immersed himself in the company culture by earning a barista certification.

Criticism of remote leadership

Some experts argue that this arrangement sets a poor example and may demoralize employees. 

Samuel Johar, chair of board advisory firm Buchanan Harvey, stated, “It is not wise and sets a terrible example. It smacks of one rule for CEOs and another for everybody else”. 

Peter Cappelli from The Wharton School added, “Good luck trying to get anyone else to come into the office if your CEO doesn’t have to do it”.

Benefits of remote and hybrid work

Others view this as a sign of changing times. 

Job van der Voort, CEO of Remote, commented, “It’s just a sign of the times. Company bosses are basically always on and a lot of people are always working from their phone or in transit so making this formal makes a lot of sense”.

Ellevest, a virtual investment and financial literacy platform designed for women, has embraced a fully remote work model since the pandemic began. 

“We were hiring people from all over the country without really asking them where they were from. Our productivity was really strong, and we found that we weren’t really losing anything in culture,” said Sallie Krawcheck, CEO of Ellevest.

Meanwhile, a survey by International Workplace Group (IWG) has uncovered a surprising trend among corporate leaders: only 7% of CEOs are working full-time in the office, despite calls for employees to return to traditional work settings. 

Starbucks’ response

In response to the debate, Starbucks emphasized that Niccol’s “primary office and a majority of his time” would still be spent in Seattle or visiting staff and customers worldwide. The company also assured that he would exceed the hybrid work guidelines that apply to all employees.

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