back to article Microsoft ditches plans for 500,000 sq ft London office

Microsoft has called off the search for a swanky 500,000 sq ft office in the heart of England's capital amid a cost-cutting drive that has seen thousands of employees forced out. According to React News, Microsoft's office tenancy in Reading is coming to an end in 2026 so senior management were eyeing up other options. …

  1. Anonymous Coward
    Anonymous Coward

    Enfield

    To be fair, they also gained a brand new office in Enfield as part of their Metaswitch acquisition in 2020. It's very nice.

    1. gerryg

      Re: Enfield

      Also, to be fair, London is the capital of the United Kingdom

      1. katrinab Silver badge
        Alert

        Re: Enfield

        It is also an overpriced dump. Microsoft’s neighbours on Oxford St are mostly empty shops and money-laundering fronts disguised as American Candy shops.

        1. werdsmith Silver badge

          Re: Enfield

          Microsoft’s neighbours on Oxford St are mostly empty shops and money-laundering fronts disguised as American Candy shops.

          You’ve provided an example of considerable exaggeration there.

          1. NeilPost Silver badge

            Re: Enfield

            https://amp.theguardian.com/business/2022/jul/16/london-oxford-street-from-retail-heaven-to-candy-store-hell

            1. JT_3K

              Re: Enfield

              A fascinating read, thanks!

          2. katrinab Silver badge
            Megaphone

            Re: Enfield

            The Daily Mail is not the most reliable source of information, but I can confirm that the photos presented are an accurate reflection of what Oxford St looks like at the moment

            https://www.dailymail.co.uk/news/article-11871611/Oxford-Street-CLOSED-business-Big-brands-abandoned-Londons-iconic-shopping-destination.html

            Retail Week is a reliable source

            https://www.retail-week.com/stores/exclusive-oxford-street-has-more-empty-shops-than-average-british-high-street/7043389.article

            Don't know how reliable this source is, but this particular article seems to be pretty accurate

            https://www.drapersonline.com/news/oxford-street-candy-shops-return-to-peak-levels

            Retail Gazette is a reliable source

            https://www.retailgazette.co.uk/blog/2023/03/fashion-oxford-street-american-candy/

            As is the Financial Times

            https://www.ft.com/candy

            So I don't think I am exaggerating at all.

            Now on Oxford Street, you have the sorts of boring but essential shops you would expect to find on any high street, such as Sainsburys Local, Superdrug, Boots, Vodafone, HSBC, etc. And then for actual destination retail, you basically have Selfridges and Microsoft; and that is about it. The rest is trash.

            1. werdsmith Silver badge

              Re: Enfield

              I regularly emerge from the tube at Oxford Circus, as recently as last week. I normally head west towards JL and Selfridge, then double back and head down Regent Street towards Piccadilly Circus. This takes me twice past that big armoured vehicle in the window. Yes there are a few of those crappy shops dotted about but the selective photography in the doom monger rags and the description above is absolutely not what I see.

            2. Fruit and Nutcase Silver badge
              Coat

              Re: Enfield

              Of course salvation is on hand for the devoted as they head over to Oxford Circus from the direction of Selfridges/Bond St.

              Turn right into Regent's St, and the hallowed portals of the Apple Store are just there

              1. katrinab Silver badge
                Gimp

                Re: Enfield

                Sure, but I don't think Apple Stores are unique enough to be considered destination retail. There's not quite as many of them as there are Superdrugs or Sainsburys Local, but most big places have one, or even places as small as Basingstoke.

                For Selfridges, the next nearest would be Birmingham, Dublin (Brown Thomas, it is the same company), or somewhere in France (not the same company, but an equivalent shopping experience). For Microsoft, the next nearest shop is in Seattle.

                1. werdsmith Silver badge

                  Re: Enfield

                  Oxford Street is just London's high street. It doesn't claim anything else. It always was where the the chains are. It used to have some of the signature stores, like HMV and Virgin etc, but I would never have thought of going there for any benefit other than having them all together.

                  Now there are the Westfields, or Battersea etc which can exclude the the rain. And London has New Bond Street, Knightsbridge and the little specialist quarters like that.

  2. Steve Button Silver badge

    Seems sensible.

    I mean, with things they way they are you are going to struggle to force people to come into the office 5 days a week, probably ever again. I know some people like it, but many others don't. For me, and the work I do, I'd be happy to go in once a week or once every two weeks. If I lived closer to London, perhaps more often.

    I don't think I'm alone in this, and with that in mind it makes total sense to close down some offices. Perhaps some of them can even be turned back into residential, so the area isn't completely dead in the evening.

    If I'm only going in once a week, I'm happy to book a desk for the day and a room to meet up with my colleagues for a couple of hours. Well I say "happy", but I'd like a decent screen, wifi and chair as a bare minimum. I don't care much about table tennis, foosball, bean bags, slides and free beer.

    So, well done Microsoft.

    EDIT: And please stop with the "Cloud growth is slowing". Azure is actually growing quite strongly.

  3. This post has been deleted by its author

  4. Roland6 Silver badge

    London cheaper than Reading?!

    Buying the Reading campus is probably going to be cheaper than anything in central London, although Google may have a plot at Kings Cross going spare…

    1. NeilPost Silver badge

      Re: London cheaper than Reading?!

      Nothing that could not be done out of an anonymous shed in Doncaster, Derry, Carlisle, Dundee, Bradford, Bridgend etc.

      Build another Azure DC. Put a mezzanine floor on it and hey instant office.

      1. Steve Button Silver badge

        Re: London cheaper than Reading?!

        In a secure DC you want the least number of people going in and out as possible. You probably don't even want most people to know where it is.

        Also, the ones who do have to go in and out have to go through a fair amount of security which involves showing some ID, and not just waving a badge at a reader.

        This is a really bad idea.

        1. NeilPost Silver badge

          Re: London cheaper than Reading?!

          *Self-evidently* they won’t share the same door, in the same way when you walk into a bank there is not a pile of cash on the floor on in the foyer.

          1. Steve Button Silver badge

            Re: London cheaper than Reading?!

            I guess you've never been in a secure Data Centre.

            They have razor wire fences around the whole perimeter, and to even get your car in you would have to pre-register the number plate. Various other hoops to jump through.

            They just don't want randos around the place who might accidentally set off a fire alarm or deliberately set off an EMP and fry half the servers (which would be a REALLY bad look). Or 101 other risks that you can't immediately think of.

    2. Fruit and Nutcase Silver badge
      Joke

      Re: London cheaper than Reading?!

      May be if King Charles would consider decamping to one of his other residences, Buckingham Palace could be sold for redevelopment. Offices / housing, including a social housing element.

      Even Twitter could be enticed with some rent-by-the-hour office space

  5. Anonymous Coward
    Anonymous Coward

    Dead

    I was working next door in TVP from the end of the lock down, and it looks like most of the Microsofties didn't bother coming back. The place was mostly dead unless they needed some bodies about when a dignitary visited. They've probably realised they would get even less of them showing up if they had to commute in to central London.

  6. Anonymous Coward
    Anonymous Coward

    Not a good look...

    When your business is cloud integrated desktop and server operating systems, cloud services, and collaboration platforms... it's not a good look to say "We need more offices." (or to force your peons back to the office for that matter)

  7. Mr Dogshit

    "have facilities across the country"

    Really? Any further north than Potter's Bar?

    1. NeilPost Silver badge

      Re: "have facilities across the country"

      Plenty of sites and people available.

      It’s not still the Middle Ages from say Coventry all the way to Inverness.

      1. Steve Button Silver badge

        Re: "have facilities across the country"

        I went up north. Once. Past Coventry and I started to see urchins by the side of the road living in cardboard boxes and eating coal, so I turned my car around at the next pit and went straight back to civilization. The only other time I've been that way was safely in an aeroplane at many thousands of feet above the peasants, although even up there I suspect they were throwing pork scratchings towards the sky to ward off the evil flying things.

        1. Fruit and Nutcase Silver badge

          Re: "have facilities across the country"

          The only other time I've been that way was safely in an aeroplane at many thousands of feet above the peasants, although even up there I suspect they were throwing pork scratchings towards the sky to ward off the evil flying things.

          In the case of the current incumbent in No. 10, he too skips the drudgery of travel by land and having to encounter the great unwashed until general election time...

          https://www.theguardian.com/politics/2023/feb/05/sunak-thought-to-have-spent-thousands-on-helicopter-trips-since-becoming-pm

    2. Anonymous Coward
      Anonymous Coward

      Re: "have facilities across the country"

      Yes, actually. I'm sitting in one of the two Edinburgh offices. We even write code in this one.

      1. Anonymous Coward
        Anonymous Coward

        Re: "have facilities across the country"

        Ahh - that probably explains the quality of Microsoft code then.

        Went there once to do a job at United Distillers, and was shown just how many pubs there were in the area!

        <only joking about your code, not the pubs>

        1. Fruit and Nutcase Silver badge
          Joke

          Re: "have facilities across the country"

          Ahh - that probably explains the quality of Microsoft code then.

          That would be from the Glasgow office

  8. Julian 8 Silver badge

    Desk wars

    Problem with desk sharing. Monday and Friday generally not a problem. Tue-Thur can be hard, especially if your team is allowed to only book specific desks or banks, the release for the desks is a little in advance and some pillock books them regardless of them even attempting to come in. Oh, and if you are off when they are released, good luck.

    I like going into an office to chat with colleagues who work on the same project, do the same work as myself or are part of my team. But we are so far apart that while I get into my office easily, no one else really can and I don't want to go into an office to do basically what I do at home - talk to no one (bar the cat) and have some podcats/music on while working. I'd prefer to do that in the comfort of my own home while I can get a few other things done and remove the stress/hassle of travelling

    1. Jellied Eel Silver badge

      Re: Desk wars

      Problem with desk sharing. Monday and Friday generally not a problem. Tue-Thur can be hard, especially if your team is allowed to only book specific desks or banks, the release for the desks is a little in advance and some pillock books them regardless of them even attempting to come in. Oh, and if you are off when they are released, good luck.

      Manglement are f'ng idiots. I had this kind of conversation before I struck out on my own. Be excited everybody! We're moving to a hotdesk environment! Just like when you played musical chairs when you were lil children. Yey!

      So we managed to negotiate assigned seating on account of regularly being buried in bids, designs and general paperwork, some of which needed to be kept secured. Plus whiteboards to huddle around while we tried to figure out how to make whatever sales just sold or marketing dreamed up actually work. We still had to deal with assorted people nabbing our desks, then got complaints that it was 'unfair' that we could just walk in, sit down and get to work. So I just pointed HR at the bit of the contract saying I was expected to be at my desk by 0900 and asked where the desk was?

      We parted ways not long after.

      It's ironic that MS pushes stuff like Teams, yet sill clings to old-fashioned ideas like being inside a physical office. I'm also unsuprised that it's employees might be.. somewhat reluctant to move from Reading to London given that commute is one of the most expensive, congested and unreliable train journeys in the world. Americans are used to long commutes, but I've had a few US execs and visitors be stunned by just how long it takes and how much it costs to get from LHR to Reading. Especially as it's only 50-60 miles.. And thanks to big tech, or just commuting in general, places like Reading are as expensive, if not more than London.

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