- We asked five CEOs, at companies including Skillshare and Hired, why they decided to get rid of their office space.
- The CEOs said their employees want greater flexibility — and there are better ways to spend money than on rent.
- Some companies are ramping up hiring or giving employees stipends to set up their home offices.
- Visit Business Insider’s homepage for more stories.
Rent is expensive. And potentially unnecessary.
Since March, offices around the world have been eerily silent, as the folks who normally fill them have been isolating from the coronavirus at home. Many employers have responded by cutting their real-estate costs.
A Reuters analysis of quarterly earnings calls during a week in July found that more than 25 large companies intend to downsize their office space in the coming year. Business Insider’s Daniel Geiger reported that a growing number of employers — including Macy’s and Yelp — are subleasing their office space.
Some businesses have decided to pull the plug, trading office space for cyberspace for the foreseeable future. For companies that have been hit hard by the recession, it’s an obvious place to reduce spending — especially if employees have been just as effective out of their boss’ sight.
Business Insider spoke to five CEOs in a range of industries who opted to ditch their offices during the pandemic. We asked them how they arrived at this decision, where they’re saving money, and what kinds of challenges they’ve run into. All these companies have fewer than 200 employees, so the transition to remote work might be easier for them than for large corporations.
Read on for the executives’ insights.
Responses have been edited for length and clarity.
Mehul Patel, CEO of Hired
What the company does: Matches