Meta and Microsoft vacating offices in US amid tech layoffs: Report
Facebook parent Meta and Microsoft are separately vacating office buildings in Seattle and Bellevue in Washington -in the latest sign of change in the tech sector and softness in the office market here, according to media reports. Both Meta and Microsoft have embraced remote work while paring back their workforces as the tech sector swoons.
Meta (formerly Facebook) and Microsoft are giving up office facilities in Seattle and Bellevue in Washington, US. The decision was taken a few days after Twitter made a comparable cutback in spending amid hazy macroeconomic conditions. The parent company of Facebook, Meta, has confirmed its plans to sublet premises in Bellevue and downtown Seattle. The headquarters of Facebook are in Menlo Park, California.
According to the report, Microsoft will not extend its lease on Bellevue's 26-story City Center Plaza. The contract expires in June 2024. The headquarters of Microsoft are in Redmond, Washington.
The report also emphasises that Microsoft and Meta are closing their offices since many of their workers prefer remote work arrangements. However, a recession in the global economy is putting pressure on both digital behemoths. In November 2022, Meta lay off 11,000 people worldwide. 726 workers from the company's Seattle branch left. Microsoft, meanwhile, has not made widespread workforce reductions despite taking steps to contain expenses. Microsoft stopped hiring for several positions in July 2022 in order to reduce costs.
Along with Microsoft and Meta, Twitter is reducing costs by closing down offices throughout the world. Additionally, the social networking business is being sued for allegedly not making rent payments.
Twitter allegedly owes a Rs 1.12 crore rent, according to the landlord. Another rumour surfaced recently claiming that due to unpaid rent, Singaporean staff had been forced to vacate the property. In an effort to save expenses, Twitter will purportedly also closing its offices in Delhi and Mumbai.
It's interesting to note that Twitter's owner, Elon Musk, favours in-person labour over virtual employment. However, given the circumstances, his staff will now be required to work from distant locations.