31 Aug Closed For Business
Twitter’s Decision to Scale Down and Go Remote
Covid 19 struck was a wake-up call for many big firms globally. Company executives have come to the realization that some operations can happen smoothly from the comfort of their homes. For that reason, Twitter is scaling down administration costs by closing down some of its facilities. The goal is to decrease expenses and expedite logistics ahead of the takeover by Elon Musk.
There are several other firms that have downsized their office space. In June, there are reports which indicated that Yahoo was shutting its innovation hub which was completed in 2021. Considering the events globally, Twitter is likely not the only firm confronted with the decision of having to close down its hubs. Reducing space reduces expenses and it’s a consideration even more so now in the aftermath of the shutdowns from the Covid epidemic.
Big Tech companies have geared up and taken lead in facilitating remote operations. Decisions to tighten up office operations are therefore embraced by the big tech firms. In fact, they are always ready to spearhead trials and these trials have been adopted by various companies and state agencies. Studies show that the US is embracing remote working with 27% of its workers in computing fields operating from home occasionally. Working from home in practice has been discovered to work well with employees of all ranks.
Integration of tech activities into a remote setup has a serious contagion effect on related support services that emanate from an office facility. There is a significant impact on the local economy once the tech activities migrate to remote locations. First, is in the vast spaces left behind, and it is a serious hit on the real-estate agencies because tech takes up voluminous spaces and corresponds to huge losses on the property. The other significant outcome is the unemployment crisis. Office facilities provide various support and administrative jobs. When offices are abandoned so are jobs lost and it has a severe consequence on the local economy. The third sector that is going to be affected is food and entertainment in the vicinity of the offices.
Twitter is one of the major contributors in terms of employment and GDP in many large cities. Therefore, if the operations go remote, there will be unemployment. The support staff will suffer the worst hit by the decision. The Big Tech significance continues to brew globally and has corresponding consequences on other sectors of the economy. The industry is revolutionary and fragile, one time it is the biggest contributor to real estate, and the next, it is not. There is nevertheless hope for locations like the River North in Denver, East Austin, and Wynwood in Miami. They have tech investors and are adjusting to the dynamic nature of technology.
Not really Closed for Business. More moving to a new facility, our homes.