Disney CEO Bob Iger Requires Hybrid Staff To Return To The Office At Least Four Days A Week

Key takeaways

• During the pandemic, roughly 18% of the workforce worked remotely.
• Despite worker preference for working from home, companies like Disney have demanded a return to the office.
• Disney’s requirement for in-person work is aimed at improving creative collaboration between employees,

The onset of the COVID-19 pandemic caused a massive change in how people do their jobs. When leaving home and commuting to crowded offices became unsafe, millions of Americans started working from home. The number of Americans working from home tripled between 2019 and 2021, reaching 17.9% of the workforce.

As the pandemic and related restrictions recede, many companies are eager to have their workers return to the office. However, not all workers have been excited about the prospect.

One of the latest companies to announce a return to the office is Disney, where CEO Bob Iger announced that staff would need to be in the office four days a week. Here’s what this means for the company and shareholders, and how Q.ai can help.

Office Returns and the Great Resignation

During the pandemic, people’s relationships with work shifted significantly. As more people began to work from home, they rethought the concept that people work best from the office and that office culture is essential.

In a Pew Research survey, 64% of respondents noted that working from home made it easier to balance their work and personal lives, and 44% said it is easier to get work done at home.

People’s priorities also changed. In a survey about how the pandemic altered their outlook, 65% of respondents said that their attitude toward the value of things outside of work had shifted and that they had started to rethink the place of work in their life.

62% of respondents noted that they wanted bigger change in their life, 52% questioned the purpose of their day-to-day job, and 50% changed what they expected from an employer.

In short, many people enjoyed the freedom of working from home and questioned the point of returning to the office or even the nature of work itself.

Many companies began announcing returns to offices in 2021, and the response was primarily negative. A survey of 1,002 employees conducted in August 2021 found that 25% of remote employees felt happy about returning to the office, and 35% of those who had returned felt happy about it. Managers were slightly happier at 39% and 42%, respectively.

This unhappiness about demands to end remote work and return to the office played a significant role in the Great Resignation. Nearly two-thirds of workers state they are willing to quit their jobs if their companies demand a return to the office.

This played out quite publicly in a few cases, such as when new Twitter boss Elon Musk demanded that workers come into the office, leading to many resignations.

Bob Iger’s announcement and the response

Despite the backlash other employers have dealt with and the apparent preference to work from home, Disney’s CEO, Bob Iger, announced that Disney’s hybrid employees would have to come into the office four days a week.

In the announcement, he said, “As I’ve been meeting with teams throughout the company over the past few months, I’ve been reminded of the tremendous value in being together with the people you work with. In a creative business like ours, nothing can replace the ability to connect, observe, and create with peers that comes from being physically together, nor the opportunity to grow professionally by learning from leaders and mentors.”

The market did not have a massive reaction to the news. Disney shares rose by 0.91% on the day of the announcement compared to the S&P 500, which lost less than 0.5%

Iger signaled this change in November, so it did not come as a significant surprise to workers. Many had already been required to visit the office at least three times a week. Reports of employee reactions indicate that most workers were not bothered by the change.

Given that many already work from the office, those who were particularly opposed to in-person work may have already sought alternatives.

Looking forward

Disney’s announcement is another step in the fight between workers and employees regarding remote work. Despite most workers’ apparent preference for flexibility and working from home, many companies have emphasized the need to come into the office.

While there are clear benefits to in-person work, some critics have claimed that demands to come to the office are a convenient way for companies to reduce headcount without laying workers off. This lets them avoid the bad press that comes with layoffs and avoid paying severance or benefits like unemployment.

While flexibility for workers is likely to remain higher than it was pre-pandemic, an uncertain economy, fears of a recession and more layoff announcements may give employers sufficient power to demand massive reductions in remote work.

What it means for investors

Investors didn’t seem overly excited about Disney’s announcement. The company’s stock rose slightly on a day when the market was mildly down. However, many investors will watch Disney over the next few weeks and months to see what happens.

Iger has clarified that he is looking to cut costs at the company and that layoffs may play a role, leading people to wonder if his demand for more in-person work will reduce headcount and allow the company to avoid laying off workers.

Investors will also be keen to see how the return to office impacts Disney’s output. According to Iger, one of the reasons for the return is that being in the office is essential for creative collaboration. After weak showings from films like Lightyear and Strange World, investors will be watching to see if the company will produce more successful films after this move.

For investors that aren’t sure how to invest based on massive changes like returning to the office and fears of an oncoming recession, working with Q.ai can help. Its artificial intelligence can help you invest during any economic situation.

The bottom line

Returns to the office are increasingly common and contentious issues, so it’s no surprise that Disney has joined the long list of companies requiring that its workers have a more frequent presence at the office.

What remains to be seen is whether it will help Disney improve its output through improved creative collaboration. If it can do this, these changes may benefit the company and its shareholders.

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