Tensions continue to rise within the tech sector as management and employees clash over return-to-office policies.
Video-game giant Ubisoft, renowned for its Assassin’s Creed franchise, is embroiled in a labor dispute following the French company’s plans to implement a three-day, in-office workweek.
“After more than five years of working efficiently in the current remote-work context, many of our colleagues have built or rebuilt their lives (family life, housing, parenthood, etc.) and simply cannot return to the previous working conditions,” the Video Game Workers’ Union (STJV) said in a statement. “The consequence of its decision will be the loss of our colleagues’ jobs, the disorganization of many game projects, and the drastic increase in psychosocial risks for those who remain.”
According to the union, the return-to-office decision coincided with the breakdown of profit-sharing negotiations.
Ubisoft workers are being called to participate in a three-day strike, expected to take place on October 15 to October 17.
In a press release on Wednesday, Ubisoft cofounder and CEO Yves Guillemot stated that the company’s second quarter performance “fell short of our expectations.” Guillemot continued, “In the light of recent challenges, we acknowledge the need for greater efficiency while delighting players.”
The Heated Debate
There is a corporate push toward traditional in-office work. According to KPMG’s latest CEO Outlook survey, 83% of business leaders anticipate a full return to in-office work within the next three years—a substantial increase from 64% in the previous year.
Notably, 87% of CEOs indicated a willingness to reward employees who make the effort to come into the office, offering incentives, such as preferential assignments, salary increases or career advancements.
A prominent example of this trend is Amazon, which recently announced that starting January 2, 2025, its staff will be required to work on-site five days a week.
“When we look back over the last five years, we continue to believe that the advantages of being together in the office are significant,” Amazon CEO Andy Jassy wrote in a company blog post this month.
“We’ve observed that it’s easier for our teammates to learn, model, practice, and strengthen our culture; collaborating, brainstorming, and inventing are simpler and more effective; teaching and learning from one another are more seamless; and, teams tend to be better connected to one another. If anything, the last 15 months we’ve been back in the office at least three days a week has strengthened our conviction about the benefits,” Jassy added.
Amazon’s decision aligns with the actions of other tech leaders like Elon Musk, who mandated Tesla employees work in-office five days a week in 2022.
According to data from Flex Index, which tracks flexible work policies, 7% of large tech companies—those with a workforce of at least 1,000 employees—mandate full-time attendance in the office, Forbes reported.
Why The Shift To RTO?
As organizations transition back to in-person work, they face the challenge of reconciling leadership’s objectives with employees’ growing expectations for flexibility.
The effectiveness of return-to-office strategies will largely hinge on how adeptly companies can communicate the advantages of in-person collaboration, while also acknowledging and accommodating the concerns and preferences of their staff.
The following factors are driving many CEOs to push for a return to the office:
Belief In-Person Collaboration
Business leaders believe that in-person interactions foster better collaboration, creativity and problem-solving. They view face-to-face communication as essential for innovation and team cohesion.
Some executives feel that serendipitous interactions and informal discussions that occur in an office setting cannot be replicated virtually. In a 2020 letter to shareholders, JPMorgan CEO Jamie Dimon wrote that remote work “virtually eliminates spontaneous learning and creativity because you don’t run into people at the coffee machine, talk with clients in unplanned scenarios, or travel to meet with customers and employees for feedback on your products and services.”
In a 2021 email to staff, Google’s chief people officer Fiona Cicconi told her workers, “There’s just no substitute for coming together in person.”
Reinforcing Company Culture
CEOs often see the office environment as crucial for reinforcing company values and culture. They believe that physical presence helps employees absorb the organization’s ethos and strengthens their connection to the company’s mission.
Dimon stated in his letter that virtual calls “undermine the character and culture you want to promote in your company.”
Productivity Concerns
The JPMorgan chief executive also said, “A heavy reliance on Zoom meetings actually slows down decision making because there is little immediate follow-up.”
In December 2022, Salesforce CEO Marc Benioff openly complained in a companywide Slack message that newly hired remote workers were not being productive.
The memo, obtained by CNBC, read: “How do we increase the productivity of our employees at Salesforce? New employees (hired during the pandemic in 2021 & 2022) are especially facing much lower productivity. Is this a reflection of our office policy? Are we not building tribal knowledge with new employees without an office culture? Are our managers not directly addressing productivity with their teams?”
Control And Monitoring
There is a perception among some executives that in-office work allows for better control and monitoring of employees. This stems from a traditional management style that emphasizes physical presence and direct oversight. Some CEOs believe that productivity can only be ensured through in-person supervision and micromanagement.
Resistance To Change
The push for office returns may also reflect a resistance to long-term change, particularly among older executives. CEOs who have spent their entire careers in traditional office settings may find it challenging to adapt to new work models.
Real Estate Investments
Companies with significant investments in office real estate may be motivated to justify these expenses by bringing employees back. This financial consideration could be influencing some business leaders’ decisions.