Meta is not content with just hiring freezes, but is reexamining its real estate assets. While many at the company continue to stick to working from home, or running a hybrid work arrangement, Meta’s property manager, John Tennes, recently told the Wall Street Journal that the company is looking at reducing its office space, concentrating staffed workstations in close proximity and seating employees from the same team near each other.
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He admitted that Meta may not renew leases in certain buildings and that the company will reduce offices spread over several floors to one floor. “We are re-examining the entrance to the offices in the towers we have not yet moved to, or whether to continue building new areas,” he said.
The entrance to the tower in Sharon: “There is no known change in the agreement”
Is Meta re-examining the entrance to the Landmark tower that was built these days in the Sharona complex in Tel Aviv? As a reminder, the social network signed an agreement to lease 51,000 square meters of offices on 20 floors in the project, which is jointly owned by Melisron, controlled by Liora Ofer, and Effie Properties, controlled by Big. We are not aware of any changes to the agreement.”
In the meantime, Meta has already started reducing its rental space in New York and Silicon Valley. According to Bloomberg, Meta is closing its flagship office on Fourth Avenue, and according to the company this is being done as part of a move to a new branch in West Manhattan. In Mountain View in Silicon Valley, Meta decided to terminate its lease in two We-Work buildings that cover 45,000 square meters. According to reports, the lease had an option to extend it until 2034, so the company is actually leaving the building 12 years before its end. It should be noted, however, that Meta recently opened a branch in Midtown – in a prestigious building that used to be a post office – and even opened a center in San Diego.
It is not at all certain that Meta is required for all the workspaces it has rented around the world. The company is considered relatively liberal in its work-from-home policy. According to Tennes, meta offices are routinely filled with less than half the number of employees normally. Before the corona, they were only about 75% staffed on any given day.