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All of the tech CEOs I talk to have plans to downsize their offices. All of them. Employee surveys strongly indicate a desire to work remotely as a permanent op
by ttul 6y ago
All of the tech CEOs I talk to have plans to downsize their offices. All of them. Employee surveys strongly indicate a desire to work remotely as a permanent option, with the office being for meetings.
The OpEx on office space is significant - 10-15% of salary costs. So getting rid of the office or reducing its size and cost is like cutting pay by perhaps 5-7%. That’s a big deal.
- pram 6y agoYeah this has to be long-term catastrophic for commercial real estate, which was already on the rocks. My previous company commissioned/leased and furnished an entire 12 story building in 2019, and now it's practically abandoned. Who is going lease such a thing afterwards? Seems grim to me.
- konjin 6y agoSame thing as old industrial buildings: artists, then gentrification. "This is the old converted office of Microsoft. In these very rooms people used to write the operating system that used to run the world."
- ttul 6y agoI’m a party of one, but I definitely won’t be renewing my lease in November. The floor above and below are already empty with no sign of interest. This is in a typical, formerly pricy “brick and timber” loft office area of a tech heavy city.