The New York Times - USA (2020-10-15)

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THE NEW YORK TIMES BUSINESSTHURSDAY, OCTOBER 15, 2020 Y B7


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TECHNOLOGY

talent, and we believe that the cre-
ative energy of cities like New
York will continue to attract di-
verse professionals from around
the world,” said Ardine Williams,
Amazon’s vice president of work
force development.
Even with Big Tech’s expan-
sion, the city continues to face a
fundamental challenge: Most of-
fices have been deserted since
March, devastating the local econ-
omy and the ecosystem of transit,
stores, restaurants and other
business that depend on workers.
Only about 12 percent of workers
have returned to Manhattan of-
fices managed by CBRE, a com-
mercial real estate firm that man-
ages 20 million square feet of of-
fice space in the city.
Many people do not want to go
back to offices until there is a vac-
cine. Even after that, there are
mounting questions about
whether the pandemic has funda-
mentally tarnished the allure of
the office towers of Midtown and
Lower Manhattan.
What’s more, a recent uptick in
new cases in parts of Brooklyn
and Queens has raised fears that a
second wave looms and that re-
strictions on daily life could be re-
imposed.
Collectively, Amazon, Google,
Facebook and Apple have hired
more than 2,600 employees in the
city so far this year, bringing their
total employment to over 22,000
people. Facebook alone has added
1,100 workers to bring its current
work force up to 4,000.
Apple, Amazon and Facebook
have gobbled up more than 1.6
million square feet of office space
since the start of the year, most of
which was leased or bought dur-
ing the pandemic. Before the pan-
demic, Google added about 1.7 mil-
lion square feet of office space as
part of a corporate campus rising
along the Hudson River in Man-
hattan.
The companies now have
enough new office space to hire
another 15,000 employees. When
those workers will arrive at the
new offices remains uncertain; all
four companies have allowed
their employees to work remotely


and some, including Facebook,
foresee a future in which up to half
its employees work from home.
Executives at the companies
said their investments even dur-
ing one of the city’s darkest peri-
ods reflect their belief that the fea-
tures that set New York apart —
its diversity, culture, regional
transportation network and nu-
merous colleges and universities
— will keep luring people after the
pandemic.
To a large extent, the companies
are also wagering that current
and future employees will be ea-
ger to return to shared work-
places that promote spontaneity
and collaboration.
“The big takeaway here is that
New York will always be a tech
hub,” said William Floyd, director
of external affairs for Google’s
New York offices, which has about
9,000 workers, more than half of
whom are engineers.
Google is on target to employ
14,000 people in the city in the
coming years, fulfilling a 2018
pledge to double its New York City
work force. The company has
pieced together a sizable corpo-
rate campus in and around the
Chelsea neighborhood in Manhat-
tan, including several properties
that are under construction.
The tech sector first settled in
New York more than two decades
ago, a tiny player in the shadows
of the city’s traditional power-
house industries like finance, me-
dia, real estate and health care.
Google opened its first outpost
outside California, a sales office in
Manhattan with a lone employee,
in 2000.
But in recent years, New York
has blossomed into a bona fide
tech hub, an East Coast rival to Sil-
icon Valley that has become a sec-
ond home to tech behemoths but
has also given rise to thousands of
start-ups.
The larger companies have es-
tablished a tech corridor on Man-
hattan’s West Side, stretching
from West 34th Street in Midtown
south to the World Trade Center
area in Lower Manhattan.
The focus of the tech companies
in New York has shifted from mar-
keting and sales departments to

teams that mirror those in Silicon
Valley. They have recruited engi-
neers and developers from local
and regional universities and
filled some roles with West Coast
employees who want to decamp to
New York City.
For every Big Tech company in
the city, there are numerous
smaller but still sizable firms, in-
cluding Salesforce, LinkedIn, Spo-
tify and ZocDoc. Microsoft, an-
other tech giant, has a modest
presence in offices near Times
Square.
Before the pandemic, the city’s
tech sector employed 150,100 peo-
ple, and had added a total of 15,700
jobs in 2018 and 2019, according to
the New York State comptroller’s
office. Most of the new jobs were
in fields like software, data pro-
cessing and internet publishing.
The pace of hiring is expected to
keep climbing.
In August, when Facebook
grabbed all the office space at the
James A. Farley Building near
Pennsylvania Station, it cemented
Manhattan’s West Side as its East

Coast campus.
The company said it leased
730,000 square feet at the old post
office in part because of its cav-
ernous layout — a rarity among
New York City buildings — which
mimics the large open areas at its
headquarters in Menlo Park, Calif.
When a renovation is completed
next year, the building will be
filled with engineers.
“The floor plan will allow for
multiple teams to be housed on
those floors,” said Jamila Reeves,
a company spokeswoman, “and
we don’t necessarily have to break
folks up.”
Around the corner from the Far-
ley Building, Apple signed a lease
for 220,000 square feet at 11 Penn
Plaza, a 1923 Art Deco tower near
Madison Square Garden.
Before the deal, Apple, which
has said very little about its plans
in the city, had not expanded be-
yond an office building on Fifth
Avenue in the Flatiron neighbor-
hood that it moved into in 2011.
Smaller tech companies have
also kept adding to their payrolls

right through the outbreak.
MongoDB, a cloud database
platform whose headquarters are
in Midtown Manhattan, has hired
97 employees since the beginning
of the pandemic, bringing its total
work force in the city to 551.
The company, whose products
are used by Verizon, eBay and
Adobe among other companies,
has more than 2,100 employees
worldwide and is creating a hy-
brid work model to have employ-
ees work remotely some days and
in the office on others.
“While there are questions
about what the future of work
post-Covid will look like, we plan
to maintain office spaces in New
York,” said Dev Ittycheria, the
company’s chief executive. “We
believe that being physically
present with colleagues in an of-
fice can offer important opportu-
nities for in-person interaction,
collaboration, and connection that
are important for the success of
our company.”
One of the company’s newest
hires, Farah Wahab, started in Au-

gust as a product marketing man-
ager after working for five years
at tech companies in San Fran-
cisco.
Though San Francisco has a far
larger tech scene, she said the city
felt more insular compared with
New York.
“I love S.F. but it can feel a bit
like a tech-centric bubble isolated
from the real world,’’ Ms. Wahab,
32, said. “Being around different
industries and types of people, as
well as greater access to the mar-
ket, was important to me both per-
sonally and professionally.”
Kia D. Floyd, Facebook’s head
of public policy for the east and
Midwest regions, pointed out that
the company set up shop in New
York shortly before the 2008 great
recession, another challenging
period of uncertainty in the city.
“People fled the city then and
didn’t think it would come back,”
Ms. Floyd said. “But the city has
grit and resilience and diversity,
and it was always going to be in-
spirational for businesses like
ours.”

FROM FIRST BUSINESS PAGE


Office space for Instagram, which is owned by Facebook, in Manhattan. Facebook has acquired enough space to triple its current local work force of 4,000.

GABBY JONES FOR THE NEW YORK TIMES

Never Mind the Exodus,


Big Tech Is Moving In

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