A number of businesses believe that over the past twelve months have proven the merits of remote work and promised more flexible schedules. But increasingly, there are signs that the house-to-house revolution may have its limits.
What Happens: According to a survey of 500 KPMG CEOs published on Tuesday, most major global companies are no longer planning to reduce their physical footprint following the pandemic. Only 17% of CEOs expect to decline, compared to 69% in August. Only 30% said most employees would work remotely two to three days a week.
“This indicates that the downsizing has already taken place, or that the plans have changed because the impact of extensive, unplanned, remote work has taken a toll on some employees,” KPMG said in its report.
Managers estimated that 18% of employees had permanent flexible arrangements before the pandemic hit. After the pandemic, they predicted that it would rise by an average of only up to 25%.
“I expected the number to be higher,” Jimmy Etheredge, Accenture’s CEO of North America, told me this week.
Etheredge believes the number will increase as discussions continue. At his company, which plans to keep flexible arrangements in place at least during the summer, remote work will likely be managed per project.
While some clients show up daily in sectors such as retail – and expect their consultants to do the same – others have indicated that they are comfortable managing virtual professional relationships.
“Really, that would come down to customer per customer,” Etheredge said.
Some companies are continuing with plans to cut back on expensive real estate, including three of Britain’s largest banks. But the surveys are an indication that not everyone is yet willing to risk more permanent work options remotely.
Keep an eye on this space: the pandemic has also renewed talks on mental health, forcing employers to respond more to concerns about burnout and overwork, Etheredge noted.
“This is something that we and our leadership team take very seriously,” Solomon said in a voice message sent to staff on Sunday.
White House staff prepares $ 30 billion work package for Biden
The latest: The proposal, which Biden’s top advisers have been debating for weeks, will be divided into two separate sections: one focusing on infrastructure and clean energy, and a second focusing on the so-called “care economy”, focusing on key domestic economic issues, reports my CNN colleague Phil Mattingly.
The pitch is an important step towards implementing key elements of the job agenda that Biden set out during his campaign, with a series of potential tax increases on companies and rich as options to cover some of the costs.
White House officials stressed that no final decisions had been made. Biden has yet to review the proposals and plans to consult with Senate Democratic leader Chuck Schumer and House Speaker Nancy Pelosi on the scope and legislative order of the next important pillar of his agenda.
But as Biden’s next big legislative priority takes shape, investors and businesses are watching closely.
On the radar: Managers of major oil companies, including Chevron, Exxon, BP, Shell and ConocoPhillips, met virtually Monday with Biden’s national climate adviser Gina McCarthy, an industry source told my CNN Business colleague Matt Egan.
Following the meeting, the American Petroleum Institute promised to work with the Biden government on the climate crisis.
“We are committed to working with the White House to develop effective government policies that meet the ambitions of the Paris Agreement and support a cleaner future,” said Mike Sommers, CEO of API, who attended the meeting. said a statement.
Movie Theaters Think They Can Start Making Money Again
Cineworld begins next month with a phased reopening of its Regal theaters in the United States.
The company, which is the second largest movie theater operator in the world, said on Tuesday that it will open some theaters on April 2 with ‘Godzilla vs. Kong ‘, reports my CNN business colleague Hanna Ziady. More cinemas open on April 16 with “Mortal Kombat.”
“With capacity constraints expanding to 50% or more in most U.S. states, we will be able to operate profitably in our largest markets,” said CEO Mooky Greidinger.
Last week, AMC, the world’s largest movie theater chain, said 99% of its US theaters would be open by the end of this month.
Investor Insights: Cineworld shares fell Tuesday, but posted more than 60% profit this year due to reopening excitement. AMC Entertainment’s shares, which have been picked up in recent waves of retail enthusiasm, have risen nearly 490%.
Following
Also today: new US home sales for February post at 10:00 ET.
Come tomorrow: the latest data on US crude stocks will arrive as oil prices fall again.