The Bankwatch

Tracking the consumer evolution of financial services

Amazon draw a line in the sand on post-pandemic “Work from Home”

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Amazon Bets on Office-Based Work With Expansion in Major Cities

The e-commerce giant says it is adding 3,500 employees in six major cities, including 2,000 jobs in New York City

The Wall St Journal has an exclusive piece on Amazon investment in downtown work. This in contrast to the general sense that Information Worker activity is moving away from downtown offices to home which could be suburbs or anywhere at all.

They are adding 3,500 corporate jobs across the US.

Amazon is preparing to add 3,500 corporate jobs across hubs in New York, Phoenix, San Diego, Denver, Detroit and Dallas, the company said Tuesday. The plans include 2,000 jobs at the historic building in Manhattan that once housed the Lord & Taylor flagship department store. Amazon purchased the Fifth Avenue building from work-sharing company WeWork, a subsidiary of We Co., for more than $1 billion, people familiar with the matter said.

The connection to Canada with the inclusion of the WeWork building in New York is interesting. The Canada Minister of Finance resigned last night in connection with a scandal whereby he and his family had a trip to South America paid for by WeWork. None of us in Canada knew WeWork had a billion dollar building in NY. But that is another story and for another day.

Relevance to Bankwatch:

The message here is no surprise in that we really do not know what post Pandemic Work looks like. In fact will there ever be a post-Pandemic world. A more and more likely post world will see a more restrictive world full of personal health risk that is managed differently by different jurisdictions and countries.

There will be constant surprises as companies with cash seek to optimise their future in a world where old growth vectors are no longer available. Consumer growth driving sales of consumer growth will certainly flatten.

Purchase of basics such as groceries, health consumables, education, communication and supporting technology will look for better less touch methods.

<speculation>

My quick speculation for this post would see these examples:

  • Amazon – shopping logistics; back to the original post book Amazon vision of a virtual mall
  • Apple – technology that offers a seamless gateway to the basics noted above while maintaining secure privacy of wallet and communication
  • Shopify – the shopping, payment connection
  • edge outlier suppliers such as Fastly, a cloud provider that is carving out a niche in that fuzziest of spaces
  • Microsoft – less clear for me. Probably education, and enterprise Cloud. In Europe everyone uses Google or Open Office.
  • Google and FaceBook– I have been an advertising hater since forever. I am not speculating on Google or FaceBook. I have no strong sense of future success for those two companies. They are behemoths and will have impact but not in their current form (imho)
  • AI – critical for each space and for us all. It is unclear how this will shape up;
    • Proprietary AI,
    • Shared AI,
    • Enterprise AI,
    • Personal AI,
    • all of those and more … we do know it will be key and especially when it transcends algorithm basis and becomes truly self learning.
  • </speculation>

Written by Colin Henderson

August 27, 2020 at 19:27

Posted in Uncategorized

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