Meta is going to pay more than 180 million dollars to terminate early the rental contract for an eight-story office block, which he signed two years ago and which still remains empty, without the company occupying it. This is a 20-year contract. in northwest Londonnear Regent’s Park: number one Triton Square.
The Register highlights that it is one of the two buildings it has rented in the area, it has about 29,000 square meters, and for several months it has been trying to sublease it to other companies. After reaching an agreement to terminate the contract, he will be free 18 years before his initially scheduled end.
The decision made by Meta to rent the building was made before the deep reduction in spending on digital advertising, which caught Meta, as well as Google, off guard, and during a period in which the group had unbridled hiring activity. .
Its workforce, before the layoffs carried out between the end of 2022 and the beginning of 2023, went from just over 58,000 people in 2019 to more than 87,000 in the last quarter of 2022. Without a doubt, many staff who could not fit in the offices that they had until then in many points, despite the fact that many use a hybrid work format.
But the cuts came, and in November Mark Zuckerberg announced that Meta was going to eliminate 11,000 jobs, 13% of its total workforce. These were followed by another 10,000 layoffs last March. Therefore, paying millions to rent an office building that is not used, or even furnished, is likely not worth it.
According to a communication from British Land, Meta has paid the equivalent of seven years’ rent to cancel the contract: 181 million of dollars. From the group they have indicated that «Recent years have added new possibilities to the role of the office, and we are prioritizing focused and balanced investments that support our main long-term strategic priorities, as well as. lead the creation of the workplace of the future«.
Furthermore, they wanted to make it clear that they continue «fully committed to London, as evidenced by the recent opening of our King’s Cross office, cementing our local footprint«. But the truth is that between the layoffs carried out, and its hybrid work format, which implies that its employees work from one of its offices three days each week, it needs fewer offices to accommodate them. At least, in London.
