Skip to content
Cut Office Space, Not People.

Are we entering a recession? No one can seem to agree. But one thing is for sure: companies are starting to cut costs and prepare for some tough economic times ahead. We have already started to hear about layoffs, and in the past, layoffs have always been the main lever companies had to reduce their expenses significantly. Getting rid of snacks and lavish events have helped too, but headcount reduction is the big one.

But times have changed. While labor remains the top expense for companies, the second is often office space for non-remote companies, and with a clearer path than ever for companies to successfully shift some or all employees to remote work, cutting office space instead of people can not only help your business continue to thrive, it will also eliminate the reputation and cultural issues layoffs have on your company.

Making the Leap from Hybrid to Remote

The key workplace policy change that needs to happen to shed office space is moving from hybrid to fully remote. But let’s be clear, “remote” does not mean “no office at all” and we’ll get to that later. But shifting away from hybrid does mean you can eliminate the cost of a fixed office lease or maintain fewer of those leases.

How companies communicate and implement this change will vary based on your culture and communication style, but proper communication is key. Companies should be honest that moving to remote work is a long term investment in the company and employees. You likely already have some remote employees, so the shift likely won’t be entirely foreign either.

Moving From Leases to On-Demand Office Space

Getting out of an office lease isn’t a simple process, but it’s possible. Every lease, city, and state will have different terms and rules about breaking a lease. In almost every case, it will cost the business money. But in some ways it’s the same as a layoff: you’re cutting a long-term cost by paying a short term cost. Ultimately you will not only be saving thousands per year per employee, but you will also start only paying for office space when it’s needed.

That’s where on-demand office or coworking space comes in. Just because a company is remote does not mean employees don’t get together and collaborate in person regularly, or that employees can’t go to an office to do focused work outside their home. In fact, it’s just the opposite. On-demand coworking space gives employees flexibility to work and collaborate whenever and wherever they want.

With on-demand office space, your company’s spend on workspace for employees is as efficient as possible. You are only paying for office space when it’s needed and you can even set limits on those costs. Most of the technology your company uses today is likely paid for in an on-demands SaaS model, so why shouldn’t your office space?

Larger companies may even choose to maintain some leases in certain geographies and eliminate offices in other areas to cut costs. On-demand space can supplement those offices if more space is needed and it can take the place of fixed offices in areas with fewer employees.

Make It Simple

One convenience that’s lost without a fixed office lease is the simplicity of employees having an office that’s in the same place, on the same bus line, with the same desk, the same conference room setups and same amenities as always. Moving to on-demand office space adds some complexity. Employees have to look for space, find one that suits their needs, book it themselves, and share the location details with everyone coming to meet.

Solving this complexity is why we started Flexspace. Our goal is to make the on-demand booking process as simple as possible so that companies that have shed their office space and moved to remote work can maintain simplicity when going to an office and collaborating. That means simple booking, easy cost management and reporting, and access to a vast global network of workspaces.

If you are a company that has recently cut office space or is evaluating it, get in touch and our team can share how other companies are navigating this complex process and cutting costs so they can focus on retaining employees and growing their company, even in turbulent times.