In a latest development, media reported that the social media major, 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.
Facebook and Microsoft Future Plan
As per this latest change in the tech sector, Facebook parent Meta and Microsoft are separately vacating office buildings in Seattle and Bellevue in Washington, reportedly .
On Friday, Facebook confirmed its plan to sublease its offices at the six-story Arbor Block 333 in downtown Seattle.
Further, the technology conglomerate said that it is also reviewing leases for other Seattle-area office buildings.
On the other hand, the technology major, Microsoft, confirmed that it won’t renew its lease at a 26-story building in Bellevue when the lease ends in 2024.
Embracing Remote Working
It appears that the technology giants like Meta and Microsoft have embraced remote work while paring back their workforces.
Prior to this, Meta announced layoffs of 726 Seattle-area workers during November.
In this regard, Meta spokesperson Tracy Clayton said the decisions were driven by the company’s move toward remote, or “distributed”, work.
Although he didn’t deny that, “given the economic climate”, Meta was also trying to be… “financially prudent”.
Coming to Microsoft, the firm’s spokesperson characterized its decision about the Bellevue office as part of an ongoing evaluation of the firm’s “real estate portfolio”.
Struggling Against Economic Headwinds
Presently, Meta occupies all of Arbor Block 333 in Seattle and would have occupied all of Block 6, which is scheduled to open later this year.
Moreover, the IT firm still has offices in 29 buildings, and nearly 8,000 workers, in the Seattle area, which remains the company’s second-largest engineering hub outside of its Menlo Park headquarters, Clayton said.
A Microsoft spokesperson characterized its decision about City Center Plaza as part of an ongoing evaluation of the firm’s “real estate portfolio to ensure we provide an exceptional place to work and create greater collaboration and community for our employees.”
This decision from Microsoft also comes amid a massive remodeling of Microsoft’s Redmond campus, part of which will be completed in late 2023.
Media reported that Friday’s news adds to an already downbeat forecast for the Seattle-area office market.
It appears that they are already struggling against economic headwinds and the sluggish return of remote office workers.
