The Great Office Return: Is the Work-From-Home Era Really Over?
the staff of the Ridgewood blog
Ridgewood NJ, Five years after a global pandemic upended the traditional workplace, the debate over remote work has reached a fever pitch. While some of the world’s biggest companies are demanding a full-time return to the office, the data tells a different story. So, is the work-from-home era truly coming to an end, or is this a new phase in the ongoing evolution of how we work?
A New Cold War: The Push for Return-to-Office (RTO)
This year has seen a wave of high-profile companies, from Amazon and JPMorgan Chase to the U.S. federal government, issue strict RTO mandates requiring employees to be in the office five days a week. Meanwhile, others like Microsoft and NBCUniversal have strengthened their hybrid work requirements.
This corporate push has taken on new weight amid a softening job market and wider economic anxieties. For companies, RTO is often framed as a way to boost collaboration, foster culture, and increase productivity. But for many employees, the flexibility and work-life balance of remote work have become non-negotiable.
The Data: Is RTO Gaining Traction?
Despite the headlines, the actual rate of working from home has remained surprisingly stable. According to researchers Nicholas Bloom, Jose Maria Barrero, and Steven J. Davis, roughly 62% of salaried employees worked full-time from an office in August 2025, a figure that has held steady since 2023. This is still a far cry from pre-pandemic norms, with about 25% of all workdays still being done remotely.
So why the disconnect? One major factor, according to Professor Bloom, is that “big shrinking firms are tending to RTO, while younger growing firms tend to be more WFH.” These opposing trends may be canceling each other out, making the overall WFH rate appear flat.
The Hidden Motives Behind the RTO Push
While many executives champion a return to the office for collaboration, there may be other, less-discussed reasons at play.
Is RTO a Stealth Layoff Strategy? One of the most compelling theories is that some companies are using RTO mandates to reduce headcount without the cost of formal layoffs. The Federal Reserve’s August Beige Book report even noted that firms are “reducing headcounts through attrition—encouraged, at times, by return-to-office policies.” This is a cheap way to cut staff, as departing employees are often not entitled to severance pay. However, the downside is that companies lose the power to choose who leaves, risking the departure of top talent, as seen with some Amazon employees who have been poached by more remote-friendly companies like Oracle.
The “Sunk-Cost” Fallacy… and Beyond It’s a common assumption that companies force RTO to justify their expensive, long-term office leases. However, commercial real estate expert Jeff Ingham notes a “flight to quality.” Companies are now spending more on high-end Class A buildings with amenities like gyms and dog-friendly spaces. The message: “Come back to the office; it won’t be that bad!” This push to create a more attractive in-person environment suggests that the motivation goes beyond simply recouping a lost investment.
The Societal Impact of the RTO Mandate
The return to the office isn’t just a corporate battle—it has broader societal implications, particularly for women and senior employees.
Research shows that RTO turnover rates are “more pronounced for female employees, more senior employees, and more skilled employees.” This trend could be a factor in the recent increase in the gender wage gap, which has returned to 2017 levels. For many mothers, remote work is critical for balancing career and family. As economist Allison Shrivastava notes, increasing female labor force participation is vital for the long-term health of the U.S. economy, and flexibility is a key part of that.
While the future of work remains uncertain, it’s clear that the debate is about much more than just where people get their work done. It’s about control, cost-cutting, equity, and the very nature of modern work culture.
Gusto is a payroll and HR software that helps you pay your team, file taxes, offer benefits, and more. See how Gusto compares to other providers, get a free trial, and learn how to switch to Gusto in minutes.
https://gusto.com/i/james3539
