How Seattle may change with Amazon's back-to-office mandate

Amazon's mandate that its workers return to the office five days a week is giving nearby Seattle retailers something to cheer about — though thousands of Amazon employees losing their hybrid work schedules may not feel the same way.

Why it matters: Office-worker foot traffic in Seattle has been slow to recover since the pandemic, which business groups say has hurt downtown restaurants and shops.

• In July, office worker foot traffic in central Seattle was estimated at 62% of 2019 levels, according to the Downtown Seattle Association .

Catch up quick: Starting Jan. 2, Amazon employees will be expected to come in five days a week, an increase from the company's current three-day-a-week policy, per a memo CEO Andy Jassy shared Monday.

• As of earlier this year, Amazon employed about 50,000 people at its Seattle headquarters, and about 87,000 workers across Washington state.

What they're saying: Jon Scholes, president of the business-oriented Downtown Seattle Association, called Amazon's announcement this week a "home run" for downtown.

• The group defines downtown as including South Lake Union and Denny Regrade, neighborhoods where Amazon's headquarters is located.
• "Bringing people back five days per week is going to be great for small businesses, restaurants and arts and culture, and will add to the overall vibrancy of downtown," Scholes said in a written statement.
• Jamie Housen, a spokesperson for Seattle Mayor Bruce Harrell, said the mayor is "excited about how this announcement will further make these neighborhoods vibrant places where people are out and about."

The other side: Amazon workers are unlikely to be as thrilled with the new policy.

• Hundreds of them staged a walkout last year in part over dissatisfaction with being asked to return to the office three days a week.
• An employee group that helped organize that walkout didn't immediately respond to an email from Axios this week.
• But a union representing workers at Alphabet, Google's parent company, wrote on X that Amazon's new policy "shows that tech corporations will continuously and without fail rob workers of their right to a flexible schedule."

Between the lines: A University of Chicago analysis of 260 million resumes, published in May , found that return-to-office mandates can drive away workers, especially senior employees, which can hurt productivity while increasing training and hiring costs.

What we're watching: While downtown restaurants have struggled lately with fewer nearby office workers, many neighborhood restaurants thrived as remote workers dined closer to home, Anthony Anton, president of the Washington Hospitality Association, told Axios.

• With more workers returning to central Seattle daily starting in January, those neighborhood and suburban restaurants may take a hit, he said.
• "There will be winners and losers," Anton said.