Amazon reportedly doesn’t have room for everyone it ordered to return to the office

Amazon (AMZN+2.30%) is reportedly hitting pause on its return-to-office (RTO) plans due to a shortage of office space.

The company had originally planned to bring all employees back to the office five days a week starting Jan. 2, 2025, but certain locations are not yet prepared to accommodate the full workforce, according to Business Insider, which cites internal notifications.

Employees in cities like Atlanta, Houston, Nashville, and New York have received notifications that they can continue with their hybrid work arrangements until their offices are ready. The delays could extend as far as May, though Amazon expects the majority of workspaces to be prepared by January.

Back in mid-September, Amazon CEO Andy Jassy sent a memo to staff outlining the company’s decision to “return to being in the office the way we were” before the pandemic.

In mid-October, Amazon Web Services CEO Matt Garman reinforced the rigid in-office policy, claiming that innovation could not happen “if we’re not in person.” That statement quickly faced backlash from employees, particularly those used to the flexibility of remote work, who said they were “appalled” by the remarks. The new five-day policy is also stricter than what existed before the pandemic – and more rigid than some of Amazon’s competitors.

This isn’t the first time Amazon’s RTO plans have hit a snag. When the company first required employees return to the office three days a week last year, many locations were unprepared to house all of the workers. Now, as Amazon works to resolve these space issues, employees are being told to prepare for a full return by the target date, regardless of whether their designated workspaces are ready.

Meanwhile, other big retailers, like Starbucks (SBUX-3.92%) and Walmart (WMT+0.77%), have also implemented tough office return policies for their employees.