Amazon delays RTO mandate for thousands of workers due to lack of space

After making headlines in September for announcing a controversial five-day in-office mandate starting this month (January 2025), Amazon has had to delay their full-time return-to-office (RTO). The reason: they don’t have enough space for thousands of their employees. According to Bloomberg, the company is struggling to provide space for its office workers in at least seven different cities, including Atlanta, Dallas, Houston, Nashville, New York, and Phoenix. 

While some people have suggested that the full-time RTO mandate was an attempt at “backdoor layoffs,” Amazon’s CEO Andy Jassy has denied that this is the case. This also isn’t the first time the company has faced a space shortage after an office policy change. Regardless of the cause, for some of these Amazon employees, return dates have been pushed back as far as four months.

How workplace leaders can avoid this type of scenario

For anyone planning a big workplace change—aside from having to cancel entirely—this is basically a worst-case scenario. So how can workplace leaders avoid this type of situation? Here are a few things you can do (and some resources to help you) to create workplace plans that work.

1. Collect data for visibility into how your spaces are currently used

Before making any major changes, you need to know exactly how your workplace is operating today. Workplace analytics tools enable you to measure key metrics, like desk and meeting room usage, foot traffic patterns (including visitor traffic), and employee-to-desk ratio. This data provides a clear picture of where your space is being utilized efficiently—and where there’s room for improvement. 

Resources: 

• 4 workplace occupancy metrics to use to optimize your space
• The role of data in optimizing dynamic workspaces

2. Optimize your office layout to minimize unused space

Once you have an understanding of the status quo, you can use the data you’ve collected to make the most of your space. Convert underutilized areas into more useful spaces, whether that’s more meeting rooms or quiet zones. The goal is to maximize efficiency while creating an environment employees want to return to.

Resources: 

• From data to design: Effective space planning with Envoy workplace data
• 3 best practices for dynamic workplace design—and common pitfalls to avoid

3. Set workplace policies and plans based on data

Any big changes or new workplace policies you plan should always be backed up by both quantitative and qualitative data. Planning a workplace event? Choose a day when most people tend to be in the office. Opening a new office? Looking at a holistic view of your workplace, including attendance data, visitor traffic, and key metrics like employee-to-desk ratio, can help you forecast realistic office capacity needs and align your policies with the space you have.

Resources: 

• Return to office: Pros, cons, and tips for success
• Enable successful RTO with data enriched workplace design and attendance analytics

What to read next

At the end of the day, the ultimate goal is to create a space where employees feel engaged and productive. Here are a few more bonus resources on how your workplace design can help you better meet those needs.

Resources: 

• Why working from home is winning over your employees—and what you can do about it
• How to create a strong workplace value proposition
• 4 workplace design tips to set your office up for success