Skip to main content

Amazon is investing $1.4 billion to expand into 6 cities outside of Seattle, and it may be a sign that tech companies are reconsidering the future of the office (AMZN)

* Amazon announced that it's expanding its physical offices in six "tech hubs" around the country and adding 3,500 jobs. * The expanded offices will be based in Dallas, Detroit, Denver, New York, Phoenix, and San Diego. Amazon is investing $1.4 billion in building out those offices, it said.  * Amazon's office hubs follow a larger trend of tech companies reconsidering how and when employees return to the office. Facebook and Google aren't requiring workers to return until next summer, while Twitter has said employees may work from home forever. * Hiring more workers outside of Seattle, where the company is based, allows Amazon to expand its talent pool and potentially adjust salaries down in more affordable cities. * Visit Business Insider's homepage for more stories. For Amazon, the future of office work, post-coronavirus, means thousands of new jobs and office hubs in six cities across the US.  The ecommerce giant announced Tuesday that it's planning to add 3,500 workers and will expand its offices in six US "tech hubs" — Dallas, Detroit, Denver, New York, Phoenix, and San Diego. Teams at those offices will work in various sectors of Amazon's business, including AWS, Alexa, Amazon Fashion, and Amazon Fresh, the company said. Amazon plans to fill a range of roles at those locations, including software engineers, data scientists, and product managers.  Amazon said it's investing $1.4 billion in building out those offices. In New York, the company is building a new 630,000-square-foot office in the Lord & Taylor building on Fifth Avenue, which Amazon acquired from WeWork in March for a reported $1 billion. The building was previously planned to be the site of WeWork's global headquarters. Amazon said it will add 2,000 new jobs in Manhattan.   Amazon's investment in physical office space comes at a time when many major tech companies are evaluating how and when employees will return to the office. Amazon previously announced that employees could work from home until January 8, 2021, while companies like Facebook and Google have said that employees may work remotely until summer 2021. Twitter has said its workforce may work from home forever with no expectation to return to the company's physical office in San Francisco.  But Amazon's decision to expand its office space outside of Seattle, where its main headquarters is located, falls in line with a trend among tech workers to abandon major coastal tech hubs, particularly the San Francisco Bay Area. A recent survey from job-search database Hired found that 40% of tech workers based in the Bay Area would move to a less expensive city if they were asked to permanently work from home.  The shift to a "decentralized" office has been percolating in the tech industry for years, and has likely been spurred on by the coronavirus. Twitter CEO Jack Dorsey recently said that Twitter has been working "for a year, if not two years" around decentralizing the way employees work, and that having a distributed workforce was "the whole promise of the internet" to begin with. The internet should have made a central office location "irrelevant," Dorsey said.  And while new tech offices in less expensive cities could be a benefit for tech workers looking to leave Seattle or the Bay Area, it also allows Amazon to expand its talent pool and potentially adjust salaries down in more affordable cities. In the case of Facebook, CEO Mark Zuckerberg recently told employees that beginning in January, employees who leave the Bay Area will have their salaries adjusted based on where they live. SEE ALSO: Silicon Valley's open offices are probably over, thanks to the coronavirus — but they were always bad for employees anyway Join the conversation about this story » NOW WATCH: Epidemiologists debunk 13 coronavirus myths
https://bit.ly/3kXBEpq

Popular posts from this blog

PayPal parts with top advertising executive after shifting its marketing strategy during the pandemic

* PayPal's chief creative officer Steve Simpson, its top advertising executive, left the company after about a year. * The move came after PayPal shifted its marketing strategy during the coronavirus pandemic, placing less emphasis on the brand and more on catering to small businesses, said a source with direct knowledge of the marketing operation. * Simpson's departure followed that of CMO and former Apple executive Allison Johnson in May. Both "decided to leave PayPal" as the company streamlines its global marketing functions, according to a PayPal spokeswoman. * Visit Business Insider's homepage for more stories. PayPal's highest-ranking ad executive Steve Simpson left earlier this month after just over a year as part of a restructuring of its global marketing business. Simpson, who was chief creative officer, was hired to make high-minded ad campaigns to help PayPal stand out from competitors like Square, Stripe, and Apple Pay. But this strategy chan

Neighbor, an Andreessen Horowitz-backed startup that wants to be the Airbnb of self-storage, has started partnering with landlords to turn empty offices into spaces for people's stuff

* The Airbnb of self-storage, Neighbor, has seen a surge in demand as a result of the pandemic, according to CEO and cofounder Joseph Woodbury.  * The company announced a partnership Tuesday with landlord and operator Bridgeton Holdings to fill vacant office space with self-storage in San Francisco and eventually across the country.  * This comes as the office market has taken a big hit from the coronavirus pandemic. * Visit Business Insider's homepage for more stories. The coronavirus has accelerated the trend of using under-utilized real estate for other purposes, like turning retail storefronts and parking lots into distribution hubs for e-commerce fulfillment and redeveloping malls into communities by adding residential units. One area of commercial real estate that's in high demand is self-storage. The average spend on construction of new facilities per year jumped to $5 billion in 2018 from $1 billion in 2015. With the coronavirus prompting moves, a likely trigger f

The machines USPS is removing from distribution centers can sort more than 36,000 pieces of mail per hour. Here's how they work.

* The United States Postal Service has been deactivating mail-sorting machines around the US ahead of the surge expected from mail-in voting this fall, reports say. * Each machine can sort up to 36,000 pieces of mail per hour.  * The machines sort letters, postcards, and other mail by bar code.  * Visit Business Insider's homepage for more stories. Mail-sorting machines used by the United States Postal Service (USPS) have been dismantled and removed from distribution centers around the country, according to postal workers. They told Motherboard that at least 19 machines were removed without explanation. An internal USPS letter from June included a plan to remove hundreds of more mail-sorting machines this year. Postal Workers Union members and some Democratic politicians have expressed concerns about changes to the USPS under Postmaster General Louis DeJoy, a major Trump donor who started his position this summer. President Trump has attacked the USPS and claimed that voting