4d ago

Like Elon Musk, 1 in 3 bosses admit they are pushing RTO because they're so upset about wasting money on all those empty desks

fortune.com Like Elon Musk, 1 in 3 bosses admit they are pushing RTO because they're so upset about wasting money on all those empty desks

One in ten of those firms admitted that they plan to scrap the mandates entirely after their leases expire.

News @lemmy.world

fortune.com /2024/12/17/return-to-office-lease-agreements-rent-elon-musk/

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Anyone who does not understand the sunk cost fallacy should not be in management.
You've spent $x on office space. You can:
A. Use it, and make your employees hate working for you or
B. Let it go unused, and your employees are happier to continue working for you.
The money is spent either way. The only difference is morale, which does in fact directly contribute to your bottom line.
- C. Get rid of what you don't need so that everyone is happy
  
  When you are locked in to a 3/5/10 year lease for the space, that's not actually an option. Most leases signed pre covid should be up by now but clueless management probably renewed anyways.
  
  And the really big corporations own their buildings. You think the company locked into leases are mad? The companies who own the building are pissed! Some have a multi million dollar building that's losing value faster than the speed of light.
  
  Good. Turn that shit into housing.
  
  No shit. But this is America... You already know that proposition is dead on arrival.
  
  Nihilism is cool and all, but smart thoughtful people are working really hard on this and it’s not easy - unless you create windowless tenements with no plumbing.
  
  First part of finding a solution is admitting to the problem. For the change we need, the wealthy and powerful need to be removed.
  
  What big company owns their building. Most I k ow build it then sell it to a management company then lease the space back. There is some accounting reason for this.
  
  Are sublets not an option?
  
  You mean sell it for money and actually make more profit while everyone is happy? Preposterous!
- Or c, keep just enough office space to create rolling “layoffs” as people are asked to return to the office.
  
  Step 1: Hire staff
  Step 2: Train staff to do job
  Step 3: COVID! Oh no! Everyone work from home.
  Step 4: ???
  Step 5: Fire staff to save money.
  Step 6: Profit.
- It's nice to find the rant in your head written out. A previous employer of mine dropped two properties in favor of a store front.
- C. Sublet out the property and make back the cost of the lease or even a bit of profit.
- They can't depreciate the assets and use them as a deduction if it doesn't count as an office expense. That only qualifies if a threshhold minimum number of workers spend a threshhold minimum amount of time in the office.
- There have to be relationships at play or something like that. Or saving face. Maybe investments?
- IMO, it's worse than that. It's not like creating a digital product, paying for a Super Bowl ad, etc. Those desks, phones, computers all still exist and can be sold. Not to mention the real estate! The slightest bit of foresight and planning and these companies could easily offset any costs they're paying, but no; they only focus on the current fiscal quarter...

89 comments