Even the US Eased Remote Work in Recession-Hit Areas... It Started with 'Wall Street'

Declining Performance and Weakened Work Flexibility
US and French Executives Also Say "Dislike Working from Home"

[Asia Economy Reporter Jeon Jinyoung] CEOs of major American companies such as Disney, Twitter, and Snap have collectively announced the end of remote work for their employees. American companies, once perceived as having a free and open corporate culture, are reverting to the traditional pre-pandemic work environment that requires employees to physically come to the office. This shift is interpreted as companies prioritizing efficiency over work flexibility amid deteriorating business performance and the need to produce results while avoiding controversies such as management negligence.

Remote Work Ending Amid Business Downturn... "Must Come to Office at Least 4 Days a Week"

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According to CNBC on the 10th (local time), Bob Iger, CEO of Disney, ordered the end of remote work at Disney and instructed employees to come to the office at least four days a week. Despite predictions that remote work would continue due to the creative nature of the roles, the announcement to end remote work surprised overseas media.

However, the end of remote work had already been gaining momentum, especially on Wall Street. This is interpreted as influenced by the conservative atmosphere in the financial sector and the recession hitting Wall Street. In May last year, David Solomon, CEO of Goldman Sachs, told Fortune in an interview that he required employees to come to the office five days a week. He criticized remote work as incompatible with an innovative and collaborative culture, and by October last year, 65% of employees had returned to the office. However, according to The New York Times, Goldman Sachs is currently preparing to lay off up to 4,000 employees due to worsening business conditions.

Jamie Dimon, CEO of JP Morgan, ordered all employees to come to the office regardless of vaccination status. He pointed out that remote work and online meetings "provide an environment that is not honest and easy to postpone tasks." Behind this is also a deteriorating business environment. JP Morgan's investment banking fees fell by more than 50% last year, and in the summer, it began laying off hundreds of mortgage bankers citing "periodic changes."

On Wall Street, there are remarks that the corporate culture is reverting to the pre-pandemic norm where "you have to show your face to keep your position." A banking industry insider told the New York Post, "In the 1980s on Wall Street, there was a saying that if you were sitting at your desk, CEOs couldn't take your desk away."

Forbes analyzed, "The legal and financial sectors prioritize direct interaction and work culture, so they were the first to end remote work."

Twitter, Snap, and Others Also Switching to Office Work... 'No Remote Work Allowed'

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Snap, which quickly switched to remote work during the pandemic, also announced a return to the office. Evan Spiegel, CEO of Snap, informed employees that they must be in the office at least four days a week. This applies to all 30 Snap offices worldwide and will be implemented starting next month. Spiegel emphasized, "Spending more time together in person will actually help unlock potential."

However, a U.S. IT specialized media outlet reported, "This policy change is because Snap has struggled with low revenue growth over the past few months," adding, "In October last year, it recorded the lowest quarterly revenue in its history. Spiegel seems to believe that returning to the office will actually help recover this."

The main reason for Disney ending remote work is also interpreted as poor business performance. Bob Iger has the responsibility to manage the aftermath of the poor performance under former CEO Bob Chapek and a 40% plunge in stock price. According to Bloomberg, Iger said when announcing this decision, "I am concerned that those who decide not to spend much time in the office will be negatively affected," and "I will spend a lot of time here (at the company), and I hope I am not lonely."

Elon Musk also ended remote work at the companies he leads. Criticized for management negligence and lack of leadership amid various controversies, Musk told Tesla employees in June last year that they must spend at least 40 hours a week in the office. After acquiring Twitter, he declared in his first email to employees that the remote work policy would be eliminated.

Why Call Employees Back to the Office? Executives Worldwide Honestly 'Dislike Remote Work'

The end of remote work is also influenced by psychological factors where higher-ranking executives prefer coming to the office, intertwined with the company's management situation. According to a study by Slack's research consortium Future Forum, which interviewed nearly 11,000 knowledge workers in the U.S., France, and other countries in November 2021, 44% of executives working remotely preferred to work in the office every day.

In contrast, only 17% of regular employees responded the same. This means that as rank increases, there is a preference for face-to-face work and receiving tasks in person, while regular employees tend to dislike direct face-to-face interaction.

In a survey conducted by Gallup in August last year targeting remote workers, 34% of respondents wanted to work remotely as full-time employees, 60% preferred a flexible hybrid schedule, and only 6% wanted to work in the traditional office-centered environment.

This content was produced with the assistance of AI translation services.