Get All Access for $5/mo

After Being Told They Could Work From Home Forever, Employees Made Major Life Changes. Then, a New CEO Ordered Them Back to the Office. Farmers Group CEO Raul Vargas is facing backlash for the change, but he says being in the office brings more "collaboration" and "innovation."

By Amanda Breen

RossHelen | Getty Images

Last year, California-based insurer Farmers Group informed employees they could work remotely on a permanent basis, and many planned accordingly, selling their cars or moving to other states.

But the company's new CEO has other plans: Raul Vargas told employees last month that he'd require the majority of Farmers staff to work in the office three days a week to further "collaboration, creativity and innovation" — and outrage ensued, The Wall Street Journal reported.

Related: Martha Stewart Is on a 'Rampage' to End Remote Work | Entrepreneur

The shift from in-office models amid the pandemic revealed that many Americans value the ability to work from home: In fact, nearly half of 1,700 employees surveyed by SHRM Research last year said they'd "definitely" look for a remote position in their next role.

Farmers Group's shift will impact roughly 60% of the company's 22,000 U.S. workers, who took to the company's internal social-media platform to express their discontent with more than 2,000 comments featuring abundant crying and angry emojis, per the WSJ.

"I was hired as a remote worker and was promised that was the company culture moving forward," a worker who specializes in medical claims posted. "This is seemingly a power move that is frankly disgusting."

Another employee in the claims division said they'd sold their home and relocated closer to their grandchildren — a "huge financial decision based on a lie."

A spokesperson for Farmers told the WSJ that employees will have until September to make necessary arrangements.

Related: Author Malcolm Gladwell Slams Remote Workers: 'You're Just Sitting in Your Pajamas'

So far, Vargas' response to the fury has been blunt. Employees told the outlet they received an email that said: "We read all your comments. We understand and we appreciate them. But we're still moving forward."

Amanda Breen

Entrepreneur Staff

Senior Features Writer

Amanda Breen is a senior features writer at Entrepreneur.com. She is a graduate of Barnard College and received an MFA in writing at Columbia University, where she was a news fellow for the School of the Arts.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

Is One Company to Blame for Soaring Rental Prices in the U.S.?

The FBI recently raided a major corporate landlord while investigating a rent price-fixing scheme. Here's what we know.

Side Hustle

This Former Starbucks Employee Started a Side Hustle That's Making More Than $70,000 a Month — and He's Not Done Yet

When Tom Saar moved to New York City, he spotted a lucrative business opportunity.

Business News

Amazon Has a Blank Book Problem: Buyers Report Receiving Fakes of Bestselling UFO Book

The book looked fine on the outside, but the inside was out-of-this-world.

Business News

Paramount Leadership Alludes to Layoffs If Merger Does Not Go Through

Paramount is awaiting approval on its merger with Skydance Media from majority shareholder Shari Redstone.

Marketing

6 SEO Tips to Help You Rank in the New Era of Quality Content

What is the best SEO strategy after Google's March 2024 core update? Here's what you need to know.

Business News

Microsoft Reportedly Lays Off Over 1,500 Employees in Cloud Sector as Partnership with OpenAI Strengthens

Alphabet also reportedly laid off employees from several teams in Google's cloud unit last week.