Andy Jassy reportedly isn’t letting up on return to the office requirements.
Amazon CEO Andy Jassy recently told employees that those who do not want to return to the office at least three days a week should consider finding employment elsewhere. According to a recording obtained by Insider, Jassy stated “It’s past the time to disagree and commit,” adding that if employees cannot commit to the new hybrid work model, “it’s probably not going to work out for you at Amazon.” He characterized the decision to have employees return to the office part-time as a “judgment call.” Notably, Jassy said employees are free to leave if they do not want to comply with the hybrid work requirement. This makes clear that Amazon has not changed its stance on returning to office work despite some employees preferring full remote arrangements.
From my (very limited) understanding, the underlying reason is the health of the national economy.
A bunch of businesses giving up their office space would destroy the commercial real estate market, and that could trigger another economic recession/depression. It could take the economy years to recover, costing companies billions, and bankrupting some of them. Even fierce competitors will work together in order to prevent that from happening. (I’m not sure how realistic that fear is; I’m just explaining their reasoning.)
So, while an individual corporation would benefit in the short term by moving to a building that’s only one third as big, the long term risks to the economy scare them off. In fact, the only reason working from home is still being discussed is because there’s a shortage of skilled workers. Companies can’t dictate terms quite as strongly as they could a few years ago. Employees see working from home as a major perk, or even a necessity. Inflexible companies invariably lose some of their best people, so they have to allow at least a few work from home options.
Personally, I like seeing corporations being forced to compromise.
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Commercial property values. They want the offices full so their investment retains value. Dassit.
I don’t get this argument. Most business don’t own any property. The office buildings are rented.
From my (very limited) understanding, the underlying reason is the health of the national economy.
A bunch of businesses giving up their office space would destroy the commercial real estate market, and that could trigger another economic recession/depression. It could take the economy years to recover, costing companies billions, and bankrupting some of them. Even fierce competitors will work together in order to prevent that from happening. (I’m not sure how realistic that fear is; I’m just explaining their reasoning.)
So, while an individual corporation would benefit in the short term by moving to a building that’s only one third as big, the long term risks to the economy scare them off. In fact, the only reason working from home is still being discussed is because there’s a shortage of skilled workers. Companies can’t dictate terms quite as strongly as they could a few years ago. Employees see working from home as a major perk, or even a necessity. Inflexible companies invariably lose some of their best people, so they have to allow at least a few work from home options.
Personally, I like seeing corporations being forced to compromise.