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Amazon Thinks Future Of Work Is At The Office, Buys Real Estate In Six Major US Cities

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Amazon Thinks Future Of Work Is At The Office, Buys Real Estate In Six Major US Cities

Amazon.com, Inc (NASDAQ: AMZN) is expanding its office space in six cities in the United States, as it seeks to bring back its workers to their desks, the Wall Street Journal reported Tuesday.

What Happened

In contrast with other major tech peers, who are embracing remote work, the Seattle-based e-commerce giant is betting big on traditional offices, the Journal reported.

The company will reportedly add 900,000 square feet of office space at its hubs situated in New York, Phoenix, San Diego, Denver, Detroit, and Dallas.

“We are looking forward to returning to the office,” said Amazon Vice President of Workforce Development Ardine Williams, while extolling the virtues of office-based work.

The Jeff-Bezos-led company announced Tuesday its plans to create 3,500 technology and corporate jobs across the six cities as well.

The company said it has acquired the Lord & Fifth Avenue building in New York where it plans to create 2,000 new jobs and open a 630,000 square foot office.

Facebook Inc (NASDAQ: FB) also recently acquired 730,000 square foot office space in Vornado Realty Trust’s (NYSE: VNO) Penn District project in New York to expand its presence in the city.

Why It Matters

The e-commerce company hired 100,000 workers in March and another 75,000 in April during the peak of the COVID-19 pandemic to fulfill surging demand arising from lockdowns. 

The pandemic is reshaping how Americans go to work, with major tech companies such as Twitter Inc (NYSE: TWTR) saying employees can work from home as long as they want. Facebook too has shifted to a long-term work-from-home structure. 

Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) is letting employees work from home through 2020.

Price Action 

Amazon shares closed nearly 4.1% higher at $3,312.49 on Tuesday and rose another 0.2% in the after-hours session.

 

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