Amazon Delaying Controversial Full RTO, Citing Lack Of Space For All Employees

Amazon is facing challenges in following through on its return-to-office (RTO) plans due to a shortage of office space. 

While the company has mandated that employees return to the office starting January 2, some locations — particularly in New York, Houston, Atlanta, and Nashville — are not yet ready to accommodate all workers. 

As a result, employees in these cities have been informed that they can continue working from home until as late as May 2025, according to internal communications reviewed by Business Insider.

The company had originally aimed to bring employees back to the office five days a week by early 2025, but issues with office capacity are delaying the full implementation of this plan. 

While Amazon expects most workspaces to be ready by January, certain locations are still not prepared, prompting employees in those regions to maintain their hybrid work arrangements for several months longer.

Amazon’s rigid return-to-office policy has faced resistance from some employees, especially after the company’s leadership — including CEO Andy Jassy — emphasized the need for a return to pre-pandemic office norms. 

This policy was further reinforced by AWS CEO Matt Garman, who argued that innovation requires in-person collaboration. His comments sparked backlash from employees who valued the flexibility of remote work.

This isn’t the first setback for Amazon’s RTO strategy. Last year, the company struggled with office capacity issues when it first required workers to return three days a week. 

As the company works to resolve these logistical problems, employees have been told to expect a full return to the office by the designated date, regardless of whether their designated workspaces are ready.