Twitter Won’t Fly to Oakland; Looking to Cut Offices Across the Globe

Twitter, Oakland, San Francisco

By Vladimir Bosanac

Another technology stalwart is looking to trim its office exposure, and this time it’s not just across the Bay Area, but globally. In a sign of where technology tenants are looking to focus their efforts, two reports this morning indicated that Twitter will not occupy the 66,000 square foot lease in Oakland it signed with TMG Partners and KKR at 1330 Broadway while trimming its offices in San Francisco and also around the globe in Europe and Asia.

The San Francisco Business Times reported that along with the Oakland plans, Twitter will be vacating a property on Tenth Street next to its Mid-Market headquarters where it occupies several floors. In addition, the company will also downsize its lease in New York.

“We are evaluating our global office portfolio and re-sizing certain locations based on utilization,” Twitter said in a statement to the Business Times. “We’ve proven we can operate our business successfully with a distributed workforce over the years, and remain committed to our employees, our customers, and the markets we serve. These decisions do not impact our current headcount or employee roles.”

In addition to these cuts, Bloomberg reported today that Twitter may close its office in Sydney, Australia while also planning to close several other office spaces once leases expire. These include offices in Seoul; Wellington, New Zealand; Osaka, Japan; Madrid; Hamburg, Germany; and Utrecht, The Netherlands. The company may find alternative office space in some of these cities. Along with this, corporate space in other cities will be shrunk, this includes offices in Tokyo, Mumbai, New Delhi, Dublin and New York. The company stated that it isn’t planning to cut jobs.

“I want to make it clear that this does not change our commitment to the work in each of these markets,” said Dalana Brand, Twitter’s chief people office in a statement to the news organization. “If certain offices were to close, there would be no impact to Tweeps’ employment; they would simply transition to full-time WFH employees.”

The news comes on the heels of another technology announcement by one of venture capital’s stalwarts, Andreessen Horowitz. In a blog post composed by Ben Horowitz, the firm stated that it will be moving its headquarters to the cloud. “It turns out that running a technology company remotely works pretty darned well,” Horowitz stated in his blog post. “It’s not perfect, but mitigating the cultural issues associated with remote work turns out to be easier than mitigating the employee satisfaction issues associated with forcing everyone into the office 5 days/week. As a result, nearly every technology company has moved to a remote or hybrid approach to work and this change is profoundly weakening the Silicon Valley network effect.”

Horowitz concludes that this is in fact a very good thing for the country and the world mainly because it allows world-class talent to assemble from anywhere around the globe. Also, it does not cut off opportunities for people to contribute who are not physically located where their colleagues are.

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