As the world deals with mass layoffs, a new change is reportedly being observed in the tech sector. After tech layoffs rocked the industry, Facebook parent Meta and Microsoft are reportedly separately vacating their office buildings in the US.
As per a report in the Seattle Times, both companies are vacating their offices in Seattle and Bellevue. Facebook has reportedly confirmed that it is planning to sub-lease its offices in both areas. Even the Redmond-based Microsoft reportedly confirmed that it won’t renew its existing lease.
As mass layoffs and demand for work from home rise, these companies are seeing a cut in the demand for office space, as per the report. It reads, “The announcements come as the continued popularity of remote work and a tech slowdown with massive layoffs have both cut into demand for office space in Seattle and elsewhere. Both Meta and Microsoft have embraced remote work while paring back their workforces as the tech sector swoons.”
This latest development adds to the existing slump forecast for the Seattle-area office market as it continues to struggle against an economic downturn and slow return of remote office worker. The report reads, “That struggle is most visible in downtown Seattle, where total office vacancy now stands at around 25%, according to a new report by commercial real estate agency Colliers.”
While tech layoffs on a global scale started in the latter part of 2022 itself, they are also expected to continue in 2023 due to several economic headwinds. In the previous round of layoffs, many of these tech giants axed hundreds of jobs in order to cut costs.
