In a bid to streamline operations and cut costs, Amazon is reportedly gearing up to significantly reduce its office vacancies, with plans to save a staggering $1.3 billion (around Rs 10,000 crore) in the coming years.
Amazon is currently facing an office vacancy rate of around 34 percent, and Amazon now wants to take a series of targeted measures to address this issue. These include allowing leases to naturally expire, ceasing the use of certain office floors, and negotiating early terminations for select buildings. By implementing these strategies, Amazon aims to not only optimise space utilisation but also make substantial annual savings.
"We’re constantly evaluating our real estate portfolio based on the dynamic and diverse needs of Amazon’s businesses by looking at trends in how employees are using our offices. In some cases, employees may move buildings to increase collaboration and drive better utilisation of our workspaces. In other cases, we may take on additional space where we’re currently limited or make adjustments where we have excess capacity," as per Amazon spokesperson Brad Glasser said.
While the major focus of this decision is to improve operational efficiency, the objective is to align office space with the evolving needs of Amazon's workforce.
