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

Zillow Predicts These 10 Places Will Have the Hottest Housing Markets in 2025

Zillow predicted that the hottest housing market of 2025 will be Buffalo, New York. Here's why.

Science & Technology

5 AI Books Top Entrepreneurs Are Reading in a Rush for 2025

Entrepreneurs must embrace AI or risk falling behind. Discover 2025's top 5 AI books to gain a competitive edge, featuring insights from "The Wolf is at the Door" and a free AI Success Kit.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

Macy's Just Released the List of 66 Stores Closing This Year — Here's Where

Around 150 underproductive stores are set to close over the next three years.

Growing a Business

Want to Build a Digital Business? Here's the Framework You Need to Succeed.

The article emphasizes how ISO 20000-1 serves as a strategic tool for entrepreneurs to structure entirely digital businesses.