Work-From-Home or WFH has become a major theme during the current pandemic. There has been plenty of discussion on how the recent events will change the way people live and work. Concepts like social distancing and working from home are estimated to be around for a long-time.
Twitter, however, seems to be taking the meaning of long-time to a whole new level. In a recent email by CEO Jack Dorsey to his employees, the company gave its workforce the go-ahead to work from home permanently even post the pandemic lockdown. Employees who wish to come back to the office can do so, but that isn’t mandatory. Twitter also recently announced that its offices won’t open until September, barring a few exceptions.
Close observers of the company may not be too surprised with such moves. Twitter has been considering the idea of having a majorly remote workforce even before the pandemic broke out in the US. In the Q42019 earnings call, Mr. Dorsey had said, “Our concentration in San Francisco is not serving us any longer, and we will strive to be a far more distributed workforce, which we will use to improve our execution.”
Twitter isn’t alone in embracing the concept of working from home. Another tech giant, Facebook, has allowed its employees to work from home for the rest of 2020. Other tech companies like Google, Microsoft, and Amazon have also been encouraging employees to work remotely.
If this trend becomes an industry-wide phenomenon, then one would wonder what commercial real estate will look like in the next few years. After all, tech companies have been one of the largest tenants in prime locations during the past few years. One thing is for sure, tech companies will save big on rents and it can potentially boost their margins.
Shares of Twitter, Inc. closed at $29.15 on May 12, up 1.64% for the month.