Amazon Delays RTO Mandates Due to Lack of Office Space

Amazon’s ambitious return-to-office (RTO) plans, announced in September last year, have hit a roadblock. Business Insider shares that Amazon originally set to enforce a five-day RTO mandate in early 2025 but the tech giant has postponed these plans for thousands of employees, citing a lack of sufficient office space

Cities like Atlanta, Nashville, Houston, and New York are among those affected, leaving hybrid work employees in limbo according to Bloomberg. Additionally, Seattle and Phoenix were listed on the RTO chopping block.

Shortly after the plans were shared publically, nearly 73% of Amazon employees reported considering quitting. The sentiment was universal as RTO mandates at Apple, Microsoft, and SpaceX are driving away top talent.

While some speculate the RTO policy push was a cost-cutting move disguised, Amazon CEO Andy Jassy insists the delay stems purely from logistical challenges. Regardless of the reason, this scenario highlights a growing issue: companies are struggling to align office space planning with the evolving needs of hybrid and in-office teams.

This isn’t just an Amazon problem. It’s a wake-up call for workplace leaders everywhere to rethink how they manage office space and create environments employees want to return to.

How workplace leaders can avoid RTO challenges

Navigating the complexities of a return-to-office policy requires more than just mandates. It demands thoughtful planning and modern solutions. By focusing on creating adaptable, employee-centered workspaces, companies can foster collaboration, boost morale, and avoid costly pitfalls.

1. You’re not just planning space - you’re showing employees they matter.

New policies alone don’t inspire loyalty or engagement. Amazon workers’ response to the RTO policy shows that employees were accustomed to the benefits of hybrid work. They don’t want to feel forced into a space that doesn’t serve their needs. They want to feel valued and supported. And the truth is, an uninspired workspace speaks volumes.

One of the strongest complaints about the RTO policy was expressed when over 500 Amazon employees wrote to Amazon Web Services (AWS) CEO Matt Garmen questioning the “non-data-driven explanation” they were given.

Understanding how employees use office space is the key to creating an environment they actually want to return to. Workplace analytics reveal what’s working, what’s underused, and how to design a space that enhances productivity and engagement.

Mandating RTO without data-driven planning creates more frustration than productivity. Amazon employees voiced concerns over the lack of insight that went into their five-day in-office mandate, highlighting a critical gap in workplace strategy: understanding why, when, and how employees prefer to work on-site.

Workplace analytics reveal patterns that leaders can use to shape a more intentional in-office experience. Instead of assuming employees need to be physically present every day, data can pinpoint when collaboration happens organically, which teams prefer quiet focus time, and how flexible schedules can enhance—not diminish—teamwork.

A well-planned hybrid strategy doesn’t disrupt collaboration; it strengthens it. When employees know their on-site days are purposeful—whether for brainstorming sessions, project kickoffs, or team-building—they are more likely to embrace them. 

By aligning office policies with real employee behavior, companies can create a workplace that feels like an asset, not an obligation.

Need On-Demand Coworking or Office Space Management? 

Schedule a demo and talk to one our experts
Get a Demo
Andrea Rajic
Workplace Resources

Amazon Delays RTO Mandates Due to Lack of Office Space

READING TIME
6 minutes
AUTHOR
Andrea Rajic
published
Jan 30, 2025
Last updated
Jan 30, 2025
Key takeaways
1

2

3

Amazon’s ambitious return-to-office (RTO) plans, announced in September last year, have hit a roadblock. Business Insider shares that Amazon originally set to enforce a five-day RTO mandate in early 2025 but the tech giant has postponed these plans for thousands of employees, citing a lack of sufficient office space

Cities like Atlanta, Nashville, Houston, and New York are among those affected, leaving hybrid work employees in limbo according to Bloomberg. Additionally, Seattle and Phoenix were listed on the RTO chopping block.

Shortly after the plans were shared publically, nearly 73% of Amazon employees reported considering quitting. The sentiment was universal as RTO mandates at Apple, Microsoft, and SpaceX are driving away top talent.

While some speculate the RTO policy push was a cost-cutting move disguised, Amazon CEO Andy Jassy insists the delay stems purely from logistical challenges. Regardless of the reason, this scenario highlights a growing issue: companies are struggling to align office space planning with the evolving needs of hybrid and in-office teams.

This isn’t just an Amazon problem. It’s a wake-up call for workplace leaders everywhere to rethink how they manage office space and create environments employees want to return to.

How workplace leaders can avoid RTO challenges

Navigating the complexities of a return-to-office policy requires more than just mandates. It demands thoughtful planning and modern solutions. By focusing on creating adaptable, employee-centered workspaces, companies can foster collaboration, boost morale, and avoid costly pitfalls.

1. You’re not just planning space - you’re showing employees they matter.

New policies alone don’t inspire loyalty or engagement. Amazon workers’ response to the RTO policy shows that employees were accustomed to the benefits of hybrid work. They don’t want to feel forced into a space that doesn’t serve their needs. They want to feel valued and supported. And the truth is, an uninspired workspace speaks volumes.

One of the strongest complaints about the RTO policy was expressed when over 500 Amazon employees wrote to Amazon Web Services (AWS) CEO Matt Garmen questioning the “non-data-driven explanation” they were given.

Understanding how employees use office space is the key to creating an environment they actually want to return to. Workplace analytics reveal what’s working, what’s underused, and how to design a space that enhances productivity and engagement.

Mandating RTO without data-driven planning creates more frustration than productivity. Amazon employees voiced concerns over the lack of insight that went into their five-day in-office mandate, highlighting a critical gap in workplace strategy: understanding why, when, and how employees prefer to work on-site.

Workplace analytics reveal patterns that leaders can use to shape a more intentional in-office experience. Instead of assuming employees need to be physically present every day, data can pinpoint when collaboration happens organically, which teams prefer quiet focus time, and how flexible schedules can enhance—not diminish—teamwork.

A well-planned hybrid strategy doesn’t disrupt collaboration; it strengthens it. When employees know their on-site days are purposeful—whether for brainstorming sessions, project kickoffs, or team-building—they are more likely to embrace them. 

By aligning office policies with real employee behavior, companies can create a workplace that feels like an asset, not an obligation.

Get the visibility you need with Gable’s workspace analytics.

Gain insights into your office & flex space utilization to make informed decisions about real estate, hiring & employee engagement programs.

Explore now

2. Flexibility isn’t just a trend - it’s how trust is built.

Corporate employees want the freedom to choose where and how they work, a common request in the post-pandemic landscape. When you provide that choice, it says one thing loud and clear: We trust you.

This is more than logistics. It’s about creating a work experience that respects your employees’ autonomy. 

But it benefits more than your employees. For businesses, it means no more sinking costs into underused, long-term real estate leases. Instead, you gain agility - scaling spaces up or down based on team needs while saving resources.

The real value, though, is in the message it sends. By offering flexibility, you’re showing your team that their time, energy, and preferences matter. This builds trust and loyalty in a way no policy can. When employees feel supported, whether brainstorming, finalizing a project, or meeting clients, they’ll bring their best selves to work.

Flexibility is about empowering your people. And when they feel empowered, they’re not just working - they’re thriving.

Empower your team to gather with Gable’s on-demand workspaces.

Give employees access to 12,000+ premium flex spaces worldwide and a seamless platform for understanding usage and budgets.

Get a demo

3. Redesign your office to reflect how your team works

You’ve just stepped foot into an office that buzzes with purpose: collaboration zones alive with brainstorming energy, serene quiet areas for deep focus, and adaptable spaces that seem to shift effortlessly with the needs of the day. This isn’t an office designed around assumptions. It’s a workspace built with intention and your team in mind.

Office space optimization isn’t just shuffling desks or maximizing capacity. It’s creating an environment that feels alive and aligned with how people work. If your data shows meeting rooms are always booked, transform underused areas into dynamic collaboration hubs. If your team values focus time, modular desk setups can create private workspaces that flex with occupancy demands.

But here’s the core of this redesign: employees want more than functionality. They want a space that energizes and inspires. A thoughtfully designed office says, “We see how you work, and we’re investing in your success.”

It’s about creating places people want to come to, not spaces they feel obligated to endure.

The reality is that traditional full return-to-office mandates often miss this emotional connection. They push employees into spaces that may feel outdated, rigid, or simply uninspiring. Instead, focus on creating a workspace that feels intentional. Let your design choices signal that your office is an enabler of creativity, connection, and pride.

When your space reflects your team’s values and working styles, something magical happens: RTO work stops being a requirement and becomes a natural choice. That’s the power of thoughtful design.

4. Align new policies with your team's needs

New policies are more than guidelines. They’re a reflection of your company’s values. A rigid RTO mandate can unintentionally send a message that trust, flexibility, and autonomy aren’t priorities. To truly engage your employees, your workspace policies need to feel like they were designed with them in mind.

Imagine being an employee given RTO plans at an office that doesn’t feel functional or inviting. The message is clear: “We need you here because it’s the rule.” That disconnect erodes trust and engagement. But when new policies align with your team’s needs and your office space, they foster connection and purpose.

For example, instead of mandating full RTO without context, use workplace analytics to inform decisions. Hosting a company-wide event? Schedule it on a day when data shows high office attendance, making participation feel natural. Supporting remote workers? Offer seamless desk booking systems and collaborative tools that make in-office days productive and enjoyable.

This is about creating an experience that employees look forward to. It’s letting your full-time workers walk into a workspace where everything flows: the tools you need are ready, desks are easy to reserve, and collaborative spaces switch effortlessly into quiet zones.

Flex spaces: The key to future-proofing workplaces

In light of recent developments, such as President Donald Trump's executive order mandating federal employees to return to in-person work full-time, organizations are re-evaluating their workspace strategies. This shift underscores the importance of adaptable solutions that meet organizational objectives and employee preferences.

Flexible workspaces are the backbone of a modern workplace strategy. They offer companies the ability to scale space up or down based on current needs, reducing overhead costs and avoiding the risks associated with long-term real estate leases.

Benefits of flex spaces

1. Cost savings

One of the most compelling benefits of flexible workspaces is their ability to offer significant cost advantages over traditional office real estate leases. By eliminating long-term commitments and reducing capital expenditures on furniture and workplace technology, businesses can achieve substantial savings. Many flexible office spaces provide all-inclusive pricing for utilities, cleaning, and security, as well as pay-as-you-go options.

2. Location flexibility

Flex spaces break the geographic barriers of traditional offices. Teams can access professional, fully-equipped spaces in multiple cities or regions, ensuring employees have a productive place to work wherever they are. This level of location flexibility is invaluable for companies with distributed teams or employees frequently traveling for client meetings or events.

3. Employee satisfaction

Providing workspace options tailored to individual and team preferences has a direct impact on engagement and retention. Employees value having the choice to work in a comfortable and inspiring environment.

Flex spaces offer businesses value in the latest office technology, ergonomic furniture, and amenities, meaning your employees get the best of both worlds.

Whether it’s a coworking space close to home or a private office for focused work, flex spaces meet employees where they are - both literally and figuratively - enhancing their overall work experience.

4. Scalability

As businesses grow or evolve, so do their space needs. Whether a large corporation or a small startup, flex spaces offer the ability to scale up during periods of expansion or downsize during transitions. This scalability ensures your workplace strategy remains aligned with your company’s goals, headcount, and workforce dynamics.

5. Environmental impact

Adopting flex spaces also supports sustainability goals by minimizing wasted resources. With shared spaces, companies use only what they need, leading to more efficient energy consumption and reduced carbon footprints.

Flex spaces are a fundamental shift in how companies approach workplace management. They combine cost-efficiency, flexibility, and employee-centricity, making them the ultimate solution for organizations looking to stay competitive in a rapidly changing world.

Build a future-ready workplace

Amazon’s RTO challenges highlight the importance of proactive space planning and flexible workplace strategies. By leveraging data, flexible office solutions, and modern design principles, companies can avoid similar pitfalls and create environments employees genuinely want to return to.

Take the first step today.

Get started with Gable’s space scheduling software and meet your workplace experience goals in a heartbeat.

Learn more

Connect with a Gable expert today!

Contact us