The beginning of the end of remote work? Zoom employees asked to return to the office
With the implementation of quarantine measures in the midst of the Covid-19 pandemic, remote work became the predominant norm. This resulted in a significant increase in the use of platforms such as Zoom.
In an unexpected twist, occurring three years after the implementation of these measures, the company that came to represent the essence of remote work is now asking its employees to resume their activities from the office. This change of direction is ironic and raises several questions about the evolution of work dynamics.
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No more remote work
Zoom’s decision to return to the office comes at a time when large, globally recognized companies – such as Disney and Amazon – have limited or eradicated their flexible work policies.
The corporate trend is, in general, to reduce policies that allow remote work and to use hybrid or traditional models that require employees to commute to offices at least a few days a week.
Zoom, for example, claimed that a hybrid approach was highly effective compared to flexible models that included remote work, requiring employees who live within 50 miles of one of its locations to work from the office at least two days per week.
Despite having stated that employees would be able to work remotely indefinitely, the company said that the regulations reversing remote work policies will come into effect during August and September in a staggered manner. While each country will be able to adapt the guidelines according to the business needs of the area, all Zoom locations will be required to adhere to the model that promotes working from the office.
According to the Wall Street Journal, by September of last year the majority of Zoom employees were working remotely. Only 1% of its workforce was required to regularly attend the office. Seventy-five percent of employees worked from home, and the remaining percentage relied on a hybrid work model.
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Zoom, remote work and its new work dynamics
The Covid-19 pandemic required corporations to rethink work dynamics strategically. Strong government legislation limited people-to-people meetings to mitigate the spread of the virus, and companies were faced with realities that proved that remote work can be as productive as traditional work models.
Of course, the rise of video conferencing and corporate video calls has demanded constant evolution and innovation from the technology industry, and therefore from Zoom’s direct competitors. This competition resulted in the stagnation of Zoom’s growth, with a drastic deceleration trend.
As a consequence of the company’s slowing growth, at the beginning of 2023, Zoom announced a 15% reduction in its workforce, in addition to a salary reduction affecting senior executives.
So far this year, the value of its shares stands at USD $68 each, radically lower than the more than USD $500 each share was worth in October 2020.
The decision to return to face-to-face and bypass remote work is a consequence of the decline in platform growth and the constant changes and challenges of an industry that constantly demands better video technologies, and calls into question the effectiveness of the full-time implementation of remote work.
Figures behind remote work
According to studies conducted by Standford University, as of July around 12% of employees in the United States, where Zoom is headquartered, were working remotely. On the other hand, 29% were using hybrid models.
This is a corporate trend also present in the UK, where the figures are similar, according to the UK Office for National Statistics.
In a global panorama, studies by Standford University showed a notable trend towards telecommuting in English-speaking countries, above those located in Asia and Europe.
However, studies from the same institution show that the majority of employees express a preference for flexible work policies and dynamics that allow remote work among other conveniences that facilitate work-life balance.
