Blackstone CEO claims remote work affects productivity

(MENAFN) Blackstone CEO Stephen Schwarzman has voiced concerns about the impact of remote work on employee productivity and its role in deterring the return to physical offices. Schwarzman, a billionaire with significant investments in commercial real estate, shared his perspective during a panel discussion at the Future Investment Initiative summit in Saudi Arabia, often referred to as "Davos in the Desert." He argued that many employees have become accustomed to remote work during the pandemic and have, in some cases, become less committed to their jobs. Schwarzman suggested that the financial advantages of working remotely, such as reduced commuting expenses and the ability to make lunch at home, have contributed to this trend. In his view, these factors have led to a decline in productivity and work ethic among remote workers.

Schwarzman also provided insights into the current state of office space in the United States. He estimated that around 20 percent of office buildings are vacant, with an additional 20 percent leased but unoccupied. This situation reflects the challenges faced by the commercial real estate sector. Furthermore, Schwarzman anticipated that as existing office leases expire, more companies will reduce the amount of office space they rent. He also expressed concern that numerous office buildings may become economically unsustainable.

Notably, Schwarzman's stance on remote work differs from that of some other CEOs, like Goldman Sachs' David Solomon and Tesla's Elon Musk, who have been critical of remote work and require their employees to work in physical office spaces full-time. However, despite varying opinions on the matter, the demand for office space remains notably lower than pre-pandemic levels, indicating a continued shift in work dynamics and a greater acceptance of remote and hybrid work arrangements among employees.

MENAFN29102023000045015682ID1107324114