Some companies think that the last twelve months have demonstrated the merits of working remotely and have promised more flexible schedules. But there are growing signs that the work-from-home revolution could have its limits.
What’s happening: Most of the world’s major companies no longer intend to cut their physical footprint after the pandemic, according to a KPMG survey of 500 CEOs released Tuesday. Only 17% of CEOs plan to make cuts, up from 69% in August. Only 30% said they would have most employees working remotely two or three days a week.
“This suggests that there has already been a reduction in size or that plans have changed, as the impact of remote and unplanned work has affected some employees,” KPMG said in its report.
Executives estimated that 18% of employees had flexible and permanent arrangements before the pandemic arrived. After the pandemic, they predicted it would increase to 25% on average.
“I was hoping that figure would be higher,” Jimmy Etheredge, CEO of Accenture in North America, told me this week.
Etheredge believes the number will increase as discussions continue. In his company, which plans to maintain flexible arrangements at least during the summer, remote work is likely to be managed project by project.
While some clients in sectors such as retail have appeared every day, and can expect their consultants to do the same, others have indicated that they are comfortable managing virtual professional relationships.
“Really, it will reach customer by customer,” Etheredge said.
Some companies are moving forward with plans to cut expensive real estate, including three of Britain’s largest banks. But polls indicate that not everyone is willing to bet on even more permanent remote work options.
Look at this space: The pandemic has also renewed conversations about mental health, forcing employers to be more sensitive to concerns about exhaustion and overwork, Etheredge noted.
“We take this and our leadership team very seriously,” Solomon said in a voice message sent to staff on Sunday.
White House aides are preparing $ 3 trillion packages for Biden
The last one: the proposal, which Biden’s top councilors have been deliberating on for weeks, would be segmented into two separate parts: one focused on infrastructure and clean energy and a second focused on what is called the “care economy.” with a focus on key national economic issues, reports my CNN colleague Phil Mattingly.
The launch would be an important step towards enacting key elements of the work agenda that Biden set during his campaign, with a set of potential tax increases for businesses and the rich as options to cover some of the costs.
White House officials stressed that no final decisions have been made. Biden has yet to review proposals and plans to consult intensively with Democratic Senate Leader Chuck Schumer and House Speaker Nancy Pelosi on the scale and legislative sequencing of the next key pillar of his agenda.
But as the details of Biden’s next major legislative priority materialize, investors and companies are watching it closely.
On the radar: Executives from major oil companies like Chevron, Exxon, BP, Shell and ConocoPhillips met virtually Monday with Biden national climate adviser Gina McCarthy, an industry source told my CNN Business colleague, Matt Egan.
Following the meeting, the American Petroleum Institute pledged to cooperate with the Biden administration on the climate crisis.
“We are committed to working with the White House to develop effective government policies that will help fulfill the ambitions of the Paris Agreement and support a cleaner future,” API CEO Mike said in a statement. Sommers, who participated in the meeting.
Cinemas think they can make money again
Cineworld will begin a gradual reopening of its Regal theaters in the United States next month.
The company, which is the second-largest filmmaker in the world, said Tuesday it will open some theaters on April 2, with screenings of “Godzilla vs. Kong,” reports my CNN Business partner Hanna Ziady. More movie theaters will open on April 16 with “Mortal Kombat.”
“With capacity restrictions expanding to 50% or more in most U.S. states, we will be able to operate profitably in our larger markets,” said CEO Mooky Greidinger.
Last week, AMC, the world’s largest film chain, said 99% of its U.S. cinemas will be open later this month.
Investor Information: Cineworld shares fell on Tuesday, but have seen gains of more than 60% this year due to excitement for the reopening. Shares of AMC Entertainment, ravaged by the latest waves of enthusiasm for retail, have jumped close to 490%.
Until next time
Also today: New home sales in the U.S. for February release at 10 a.m. ET.
Tomorrow is coming: the latest data on U.S. crude inventories will come as oil prices fall again.