Policy

It feels like tech workers have caught very few breaks over the past several years, between ongoing mass layoffs, stagnating wages amid inflation, AI supposedly coming for jobs, and unpopular orders to return to office that, for many, threaten to disrupt work-life balance.

But in 2024, a potentially critical mass of tech workers seemed to reach a breaking point. As labor rights groups advocating for tech workers told Ars, these workers are banding together in sustained strong numbers and are either winning or appear tantalizingly close to winning better worker conditions at major tech companies, including Amazon, Apple, Google, and Microsoft.

In February, the industry-wide Tech Workers Coalition (TWC) noted that “the tech workers movement is far more expansive and impactful” than even labor rights advocates realized, noting that unionized tech workers have gone beyond early stories about Googlers marching in the streets and now “make the headlines on a daily basis.”

Ike McCreery, a TWC volunteer and ex-Googler who helped found the Alphabet Workers Union, told Ars that although “it’s hard to gauge numerically” how much movements have grown, “our sense is definitely that the momentum continues to build.”

“It’s been an exciting year,” McCreery told Ars, while expressing particular enthusiasm that even “highly compensated tech workers are really seeing themselves more as workers” in these fights—which TWC “has been pushing for a long time.”

In 2024, TWC broadened efforts to help workers organize industry-wide, helping everyone from gig workers to project managers build both union and non-union efforts to push for change in the workplace.

Such widespread organizing “would have been unthinkable only five years ago,” TWC noted in February, and it’s clear from some of 2024’s biggest wins that some movements are making gains that could further propel that momentum in 2025.

Workers could also gain the upper hand if unpopular policies increase what one November study called “brain drain.” That’s a trend where tech companies adopting potentially alienating workplace tactics risk losing top talent at a time when key industries like AI and cybersecurity are facing severe talent shortages.

Advocates told Ars that unpopular policies have always fueled workers movements, and RTO and AI are just the latest adding fuel to the fire. As many workers prepare to head back to offices in 2025 where worker surveillance is only expected to intensify, they told Ars why they expect to see workers’ momentum continue at some of the world’s biggest tech firms.

Tech worker movements growing

In August, Apple ratified a labor contract at America’s first unionized Apple Store—agreeing to a modest increase in wages, about 10 percent over three years. While small, that win came just a few weeks before the National Labor Relations Board (NLRB) determined that Amazon was a joint employer of unionized contract-based delivery drivers. And Google lost a similar fight last January when the NLRB ruled it must bargain with a union representing YouTube Music contract workers, Reuters reported.

For many workers, joining these movements helped raise wages. In September, facing mounting pressure, Amazon raised warehouse worker wages—investing $2.2 billion, its “biggest investment yet,” to broadly raise base salaries for workers. And more recently, Amazon was hit with a strike during the busy holiday season, as warehouse workers hoped to further hobble the company during a clutch financial quarter to force more bargaining. (Last year, Amazon posted record-breaking $170 billion holiday quarter revenues and has said the current strike won’t hurt revenues.)

Even typically union-friendly Microsoft drew worker backlash and criticism in 2024 following layoffs of 650 video game workers in September.

These mass layoffs are driving some workers to join movements. A senior director for organizing with Communications Workers of America (CWA), Tom Smith, told Ars that shortly after the 600-member Tech Guild—”the largest single certified group of tech workers” to organize at the New York Times—reached a tentative deal to increase wages “up to 8.25 percent over the length of the contract,” about “460 software engineers at a video game company owned by Microsoft successfully unionized.”

Smith told Ars that while workers for years have pushed for better conditions, “these large units of tech workers achieving formal recognition, building lasting organization, and winning contracts” at “a more mass scale” are maturing, following in the footsteps of unionizing Googlers and today influencing a broader swath of tech industry workers nationwide. From CWA’s viewpoint, workers in the video game industry seem best positioned to seek major wins next, Smith suggested, likely starting with Microsoft-owned companies and eventually affecting indie game companies.

CWA, TWC, and Tech Workers Union 1010 (a group run by tech workers that’s part of the Office and Professional Employees International Union) all now serve as dedicated groups supporting workers movements long-term, and that stability has helped these movements mature, McCreery told Ars. Each group plans to continue meeting workers where they are to support and help expand organizing in 2025.

Cost of RTOs may be significant, researchers warn

While layoffs likely remain the most extreme threat to tech workers broadly, a return-to-office (RTO) mandate can be just as jarring for remote tech workers who are either unable to comply or else unwilling to give up the better work-life balance that comes with no commute. Advocates told Ars that RTO policies have pushed workers to join movements, while limited research suggests that companies risk losing top talents by implementing RTO policies.

In perhaps the biggest example from 2024, when Amazon announced that it was requiring workers in-office five days a week next year, a poll on the anonymous platform where workers discuss employers, Blind, found an overwhelming majority of more than 2,000 Amazon employees were “dissatisfied.”

“My morale for this job is gone…” one worker said on Blind.

Workers criticized the “non-data-driven logic” of the RTO mandate, prompting an Amazon executive to remind them that they could take their talents elsewhere if they didn’t like it. Many confirmed that’s exactly what they planned to do. (Amazon later announced it would be delaying RTO for many office workers after belatedly realizing there was a lack of office space.)

Other companies mandating RTO faced similar backlash from workers, who continued to question the logic driving the decision. One February study showed that RTO mandates don’t make companies any more valuable but do make workers more miserable. And last month, Brian Elliott, an executive advisor who wrote a book about the benefits of flexible teams, noted that only one in three executives thinks RTO had “even a slight positive impact on productivity.”

But not every company drew a hard line the way that Amazon did. For example, Dell gave workers a choice to remain remote and accept they can never be eligible for promotions, or mark themselves as hybrid. Workers who refused the RTO said they valued their free time and admitted to looking for other job opportunities.

Very few studies have been done analyzing the true costs and benefits of RTO, a November academic study titled “Return to Office and Brain Drain” said, and so far companies aren’t necessarily backing the limited findings. The researchers behind that study noted that “the only existing study” measuring how RTO impacts employee turnover showed this year that senior employees left for other companies after Microsoft’s RTO mandate, but Microsoft disputed that finding.

Seeking to build on this research, the November study tracked “over 3 million tech and finance workers’ employment histories reported on LinkedIn” and analyzed “the effect of S&P 500 firms’ return-to-office (RTO) mandates on employee turnover and hiring.”

Choosing to only analyze the firms requiring five days in office, the final sample covered 54 RTO firms, including big tech companies like Amazon, Apple, and Microsoft. From that sample, researchers concluded that average employee turnover increased by 14 percent after RTO mandates at bigger firms. And since big firms typically have lower turnover, the increase in turnover is likely larger at smaller firms, the study’s authors concluded.

The study also supported the conclusion that “employees with the highest skill level are more likely to leave” and found that “RTO firms take significantly longer time to fill their job vacancies after RTO mandates.”

“Together, our evidence suggests that RTO mandates are costly to firms and have serious negative effects on the workforce,” the study concluded, echoing some remote workers’ complaints about the seemingly non-data-driven logic of RTO, while urging that further research is needed.

“These turnovers could potentially have short-term and long-term effects on operation, innovation, employee morale, and organizational culture,” the study concluded.

A co-author of the “brain drain” study, Mark Ma, told Ars that by contrast, Glassdoor going fully remote at least anecdotally seemed to “significantly” increase the number and quality of applications—possibly also improving retention by offering the remote flexibility that many top talents today require.

Ma said that next his team hopes to track where people who leave firms over RTO policies go next.

“Do they become self-employed, or do they go to a competitor, or do they fund their own firm?” Ma speculated, hoping to trace these patterns more definitively over the next several years.

Additionally, Ma plans to investigate individual firms’ RTO impacts, as well as impacts on niche classes of workers with highly sought-after skills—such as in areas like AI, machine learning, or cybersecurity—to see if it’s easier for them to find other jobs. In the long-term, Ma also wants to monitor for potentially less-foreseeable outcomes, such as RTO mandates possibly increasing firms’ number of challengers in their industry.

Will RTO mandates continue in 2025?

Many tech workers may be wondering if there will be a spike in return-to-office mandates in 2025, especially since one of the most politically influential figures in tech, Elon Musk, recently reiterated that he thinks remote work is “poison.”

Musk, of course, banned remote work at Tesla, as well as when he took over Twitter. And as co-lead of the US Department of Government Efficiency (DOGE), Musk reportedly plans to ban remote work for government employees, as well. If other tech firms are influenced by Musk’s moves and join executives who seem to be mandating RTO based on intuition, it’s possible that more tech workers could be forced to return to office or else seek other employment.

But Ma told Ars that he doesn’t expect to see “a big spike in the number of firms announcing return to office mandates” in 2025.

His team only found eight major firms in tech and finance that issued five-day return-to-office mandates in 2024, which was the same number of firms flagged in 2023, suggesting no major increase in RTOs from year to year. Ma told Ars that while big firms like Amazon ordering employees to return to the office made headlines, many firms seem to be continuing to embrace hybrid models, sometimes allowing employees to choose when or if they come into the office.

That seeming preference for hybrid work models seems to align with “future of work” surveys outlining workplace trends and employee preferences that the Consumer Technology Association (CTA) conducted for years but has seemingly since discontinued. In 2021, CTA reported that “89 percent of tech executives say flexible work arrangements are the most important employee benefit and 65 percent say they’ll hire more employees to work remotely.” The next year, which apparently was the last time CTA published the survey, the CTA suggested hybrid models could help attract talents in a competitive market hit with “an unprecedented demand for workers with high-tech skills.”

The CTA did not respond to Ars’ requests to comment on whether it expects hybrid work arrangements to remain preferred over five-day return-to-office policies next year.

CWA’s Smith told Ars that workers movements are growing partly because “folks are engaged in this big fight around surveillance and workplace control,” as well as anything “having to do with to what extent will people return to offices and what does that look like if and when people do return to offices?”

Without data backing RTO mandates, Ma’s study suggests that firms will struggle to retain highly skilled workers at a time when tech innovation remains a top priority for the US. As workers appear increasingly put off by policies—like RTO or AI-driven workplace monitoring or efficiency efforts threatening to replace workers with AI—Smith’s experience seems to show that disgruntled workers could find themselves drawn to unions that could help them claw back control over work-life balance. And the cost of the ensuing shuffle to some of the largest tech firms in the world could be “significant,” Ma’s study warned.

TWC’s McCreery told Ars that on top of unpopular RTO policies driving workers to join movements, workers have also become more active in protesting unpopular politics, frustrated to see their talents apparently used to further controversial conflicts and military efforts globally. Some workers think workplace organizing could be more powerful than voting to oppose political actions their companies take.

“The workplace really remains an important site of power for a lot of people where maybe they don’t feel like they can enact their values just by voting or in other ways,” McCreery said.

While unpopular policies “have always been a reason workers have joined unions and joined movements,” McCreery said that “the development of more of these unpopular policies” like RTO and AI-enhanced surveillance “really targeted” at workers has increased “the political consciousness and the sense” that tech workers are “just like any other workers.”

Layoffs at companies like Microsoft and Amazon during periods when revenue is increasing in the double-digits also unify workers, advocates told Ars. Forbes noted Microsoft laid off 1,000 workers “just five days before reporting a 17.6 percent increase in revenue to $62 billion,” while Amazon’s 1,000-worker layoffs followed a 14 percent rise in revenue to $170 billion. And demand for AI led to the highest profit margins Amazon’s seen for its cloud business in a decade, CNBC reported in October.

CWA’s Smith told Ars as companies continue to rake in profits and workers feel their work-life balance slipping away while their efforts in the office are potentially “used to increase control and cause broader suffering,” some of the biggest fights workers raised in 2024 may intensify next year.

“It’s like a shock to employees, these industries pushing people to lower your expectations because we’re going to lay off hundreds of thousands of you just because we can while we make more profits than we ever have,” Smith said. “I think workers are going to step into really broad campaigns to assert a different worldview on employment security.”