Three months after it ordered staff back to the office, Amazon has reportedly delayed its return to office (RTO) in the US because it, err, can’t fit its employees in the building.
Admin workers were previously told they would need to work in-office full-time in January 2025, in order to improve collaboration and strengthen Amazon’s culture. Prior to the policy update, corporate staff had been permitted to work from home for at least two days a week.
Amazon staff overwhelmingly expressed unhappiness with the policy. In good news for them, Business Insider has now reported that the Amazon real estate team has delayed the RTO order for staff members in specific office locations, due to limited workspace.
Amazon upset
Amazon’s RTO mandate was announced at the end of September. At the time, the ecommerce giant argued that its staff will be able to better “invent, collaborate, and be connected” if they are based in the workplace.
Now, though, Amazon’s strict RTO stance has been thrown off balance by the revelation that its offices are actually too small to accommodate corporate staff.
Internal messages seen by Business Insider (paywall) show that managers have told staff in Amazon’s New York, Atlanta, Houston, and Nashville offices they will need to continue to work from home, as the firm does not have the desk space for them to work at.
Some workers at these locations will apparently now continue with hybrid working until as late as May. The U-turn suggests that Amazon bosses may have rushed through the policy without properly considering its impact.
Amazon can’t claim to have been underprepared. It previously faced capacity constraints after it instructed staff to return to its ‘main hub’ offices in 2023 for three days per week.
Companies facing space squeeze
Outgrowing your workspace is a common issue for businesses. But after going on a hiring spree during the pandemic, the tech giant laid off 27,000 corporate workers last year, and continues to cut from its workforce in order to keep corporate headcount flat.
Instead, Amazon has made a concerted effort to downsize its office space in order to save money. Earlier this year, it announced plans to drastically reduce its office footprint in order to save an estimated $1.3bn.
Lots of UK companies have made the decision to shrink their office premises whether by closing down parts of the office or moving to a coworking membership. That includes HSBC, which will move out of its iconic tower into smaller central London premises next year.
Doing so has helped many firms to save on expensive lease and rental costs. But as the return to office debate heats up, those who have deliberately cut down their office space should consider how logistical issues will impact any future policy announcements.
Are RTOs about collaboration or cost-cutting?
Workers were unimpressed by Amazon’s RTO mandate. Many began ‘rage-applying’ to other jobs in response. Those affected by the change may now be feeling smug by Amazon managers being forced to eat their own words on home working.
However, that may have been the plan all along. Research suggests bosses are using RTO mandates to ‘quiet fire’ remote workers who are unwilling to increase attendance. It’s a subtler approach to Manchester United, which told staff to come to the office or quit in May.
Amazon has denied that its RTO mandate is a backdoor layoff. “This was not a cost play for us,” CEO Andy Jassy reportedly said at an all-hands meeting to address the policy change in October. “This is very much about our culture and strengthening our culture.”
Still, it is convenient that Amazon’s deliberate and public strategy to close down its office space and save on costs has also coincided with its RTO crackdown.
