U.S. corporations that implemented remote work during the COVID-19 pandemic are shifting back to office work. They say office work boosts efficiency, and some companies are urging employees who cannot adapt to the change in work arrangements to resign.
According to Reuters and other foreign media on the 11th (local time), Microsoft (MS) notified employees on the 9th that starting in February next year, those living within 50 miles (about 80 km) of its Puget Sound headquarters in Washington state will be required to work in the office three days a week. The company plans to gradually expand this in-office policy to other regions in the United States as well as overseas branches.
Amy Coleman, Microsoft's chief people officer (CPO), said, "The data is clear that people grow more when they meet in person more often and work together," and added, "To build the artificial intelligence (AI) products that will define this era, we need the energy and momentum that come from smart people collaborating side by side and tackling hard problems together." Microsoft had allowed employees during the pandemic to choose remote work for 50% of their working hours.
Big Tech companies have recently begun rolling back remote work. Amazon, which ran a remote work system during the pandemic, shifted in May 2023 to requiring at least three days a week in the office, and starting this year has made five days a week the principle. Google also recently instructed some remote workers to combine office attendance, and told some teams that they could be fired if they do not come in at least three times a week.
Other industries are also seeing a push to expand office work. NBCUniversal, a major U.S. entertainment corporation, has mandated four days a week in the office starting next year. The company advised employees to "make the necessary plans" over the next four months to comply with the attendance policy, and said those who do not comply must discuss other options, including a "retirement package," with an HR manager.
Paramount, a major U.S. film studio, likewise instructed employees last week to work in the office five days a week. Paramount first required attendance from employees in Los Angeles (LA) and New York, and plans to apply the same policy next year to workers in other regions, including overseas offices. In addition, JPMorgan Chase and the U.S. federal government began requiring office attendance this year.
The reason corporations are cutting back on remote work is clear: they see office work as producing higher performance than remote work. David Ellison, Paramount's chief executive officer (CEO), said in an internal memo, "In-person collaboration is absolutely essential to building and strengthening our culture and driving business success," adding, "Working together helps us innovate, solve problems, share ideas, create, challenge one another, and build the relationships that make this company great."
Some corporations are deliberately using mandatory office attendance to reduce headcount. A report released by the Federal Reserve Bank in August said, "Layoffs were reported in several districts," adding, "This was sometimes spurred by return-to-office policies and sometimes by the expansion of automation, including new AI tools." Brian Elliott, publisher of Flex Index, which tracks flexible work policies, said, "We will continue to see large companies push mandatory office attendance."
Amid an unstable U.S. job market, workers have little choice but to accept returning to the office. The Washington Post (WP) reported, "Many job seekers are struggling to find work despite years of experience and high educational attainment," adding, "With fewer job postings on the market, some employees will have no choice but to follow in-office mandates."