Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Google Shuts London Startup Hub in Home Working Pivot

Stock MarketsJun 21, 2021 23:51
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

(Bloomberg) -- Google’s parent firm plans to close its seven-story hub devoted to helping startups in London’s Shoreditch district and replace it with virtual services following the shift to home-working.

The move comes after the pandemic showed Alphabet (NASDAQ:GOOGL) Inc. that it could serve young firms across the country without the need for a physical space, according to a statement Monday. Google was forced to offer its support programs and services online when the coronavirus struck.

“The U.K. startup community doesn’t need access to a single-shared physical space as much as it needs access to resources, mentors, and programs available at scale, anywhere,” Google said in the statement. “And so as the ecosystem develops, so does our approach.”

Google opened the Campus facility near the Old Street gyratory -- dubbed ‘Silicon Roundabout’ -- in 2012. The area was hailed as Tech City by former prime minister David Cameron and was the epicenter of the country’s fast growing digital economy as low rents and easy access to the financiers in the City of London drew firms.

Since then, the growth of the startup scene in the Shoreditch district has helped drive property rents and values higher than those in traditionally dominant areas like the City, according to data compiled by broker Carter Jonas.

But the increasing move toward flexible and home working among technology companies makes it vulnerable. Rents in the area, where landlords including Derwent London Plc and Helical Plc have developed large office buildings, could fall as much as 12.5% in the year through March 2022, Carter Jonas forecasts.

Big technology companies have been among the most vocal about allowing workers to work more flexibly even after the pandemic ends. Google expects about 60% of its staff to work in the office a few days a week, with about 20% able to apply to work permanently from home.

That’s a stark contrast with finance where executives at banks including Morgan Stanley (NYSE:MS), Goldman Sachs Group Inc (NYSE:GS). and JPMorgan Chase & Co. (NYSE:JPM) have led calls for a return to the office.

(Updates with Shoreditch landlords, work from home policies from fifth paragraph)

©2021 Bloomberg L.P.

Google Shuts London Startup Hub in Home Working Pivot
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email