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DOGE’s frenetic rush to cancel government leases will hit dozens of federal offices by June and hundreds more over coming months: ‘It’s like a blitzkrieg’

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Federal agencies will begin to vacate hundreds of offices across the country this summer under a frenetic and error-riddled push by Elon Musk’s budget-cutting advisers to terminate leases that they say waste money.

Musk’s Department of Government Efficiency maintains a list of canceled real estate leases on its website, but internal documents obtained by The Associated Press contain a crucial detail: when those cancellations are expected to take effect. The documents from inside the General Services Administration, the U.S. government’s real estate manager, list dozens of federal office and building leases expected to end by June 30, with hundreds more slated over the coming months.

The rapid pace of cancellations has raised alarms, with some agencies and lawmakers appealing to DOGE to exempt specific buildings. Several agencies are facing 20 or more lease cancellations in all, including the IRS, the Social Security Administration, the U.S. Department of Agriculture and the U.S. Geological Survey.

Many of the terminations would affect agencies that aren’t as well-known but oversee services critical to many Americans.

They span from a Boise, Idaho, office of the Bureau of Reclamation — which oversees water supply and deals with disputes across the often-parched American West — to a Joliet, Illinois, outpost of the Railroad Retirement Board, which provides benefits for railroad workers and their survivors.

The lease terminations do not mean all the locations will close. In some cases, agencies may negotiate new leases to stay in place, downsize their existing space or relocate elsewhere.

“Some agencies are saying: ‘I’m not leaving. We can’t leave,’” said Chad Becker, a former GSA real estate official who now represents building owners with government leases at Arco Real Estate Solutions. “I think there’s going to be a period of pushback, a period of disbelief. And then, if necessary, they may start working on the actual execution of a move.”

Errors add to confusion

DOGE says GSA has notified landlords in recent weeks that it plans to terminate 793 leases, focusing mostly on those that can be ended within months without penalty. The group estimates those moves will save roughly $500 million over the terms of the leases, which in some cases were slated to continue into the 2030s. The Bureau of Reclamation cancellation in Boise, for instance, would take effect Aug. 31 and is expected to save a total of $18.7 million through 2035.

But DOGE’s savings estimates — a fraction of Musk’s $1 trillion cost-cutting goal — have not been verified and do not take into account the costs of moves and closures. The group has released no information about what they will mean for agencies.

“My initial reaction is this is just going to cause more chaos,” said Jim Simpson, an accountant in Arizona who helps low-income people file taxes and serves on an IRS panel that advocates for taxpayers. “There’s a lot of room to help with government efficiency, but it should be done surgically and not with a chainsaw.”

Simpson said he was surprised to learn that dozens of IRS offices, including local taxpayer assistance centers, were facing upcoming lease cancellations. He refers clients there to get paperwork to file returns and answer IRS inquiries, and he said losing services would “cause a lot of anxiety” and delay refunds.

Plans to cancel the leases at several of the IRS centers and other sites were in error and have been rescinded, according to a person with direct knowledge of the changes who spoke to the AP on the condition of anonymity in order to avoid retaliation. Those changes are not yet reflected on DOGE’s list, which only removed one and added dozens more in its latest update published Thursday.

The GSA walked back the cancellation of a Geological Survey office in Anchorage, Alaska, for instance, after learning it did not have termination rights, according to the person familiar with the matter.

Rep. Tom Cole, R-Okla., said Monday that he’d convinced DOGE to back off lease terminations planned for the National Weather Center in Norman, a Social Security office in Lawton and the Indian Health Services office in Oklahoma City. But all three leases remained on DOGE’s list of cancellations as of Thursday.

GSA’s press office didn’t respond to inquiries.

The real estate market is blindsided

While there was already a bipartisan push to reduce the government’s real estate footprint, the mass cancellations blindsided an industry known for its stability.

Landlords who had been expecting government agencies to remain tenants, for several more years in some cases under their existing leases, were stunned. Some agencies learned from building managers, not their federal partners, that their leases were being canceled, according to real estate managers.

Becker, whose firm is tracking the DOGE lease cancellations, and other observers said they expect some agencies will be unable to move their personnel and property out of their spaces within such tight timelines. That may force some agencies to pay additional rent during what’s known as a holdover period, undermining DOGE’s stated goal of saving taxpayer money.

The Building Owners and Managers Association, which represents the commercial real estate industry, told landlords in a recent advocacy alert to be prepared to seek payment from any federal government tenants who stay beyond their leases.

Many affected agencies aren’t speaking up

Asked about plans for buildings with leases that will soon expire, the IRS did not respond. A Social Security Administration spokesperson downplayed the impact of its offices losing leases, saying many were “small remote hearing sites,” did not serve the public, were already being consolidated elsewhere or planned for closure.

Several other agencies provided little clarity — saying they were working with GSA to consider their options, in statements that were nearly identical in some cases.

But a spokesperson for the Railroad Retirement Board expressed concern over the upcoming lease cancellations of its offices in Joliet, Illinois, and eight other states, saying it was working to “maintain a public-facing office presence for the local railroad community.”

Government Accountability Office official David Marroni told a congressional hearing last week that the push to unload unnecessary federal real estate was “long overdue,” saying agencies have for too long held on to unnecessary space. But he warned the downsizing must be deliberate and carefully planned to “generate substantial savings and mitigate the risk of mistakes and unexpected mission impacts.”

That process had already started before Musk’s team arrived, with the federal government’s real estate portfolio steadily declining over the last decade. Indeed, critics of DOGE say if it were truly interested in cost-cutting it could learn from GSA, whose mission even before Trump took office was to deliver “effective and efficient” services to the American public.

A law signed by former President Joe Biden before he left office in January directed agencies to measure the true occupancy rates of leased spaces by this summer. Those that did not meet a target of 60% use rate over time would be directed to dispose of their excess space.

”There is a logical and orderly way to do this,” Rep. Greg Stanton, an Arizona Democrat, said at last week’s hearing. Instead, he said, DOGE is pursuing a reckless approach that threatens to harm the delivery of public services.

Industry observers cautioned that each situation is different, and it will take months or years to understand the full impact of the lease cancellations.

“It really depends on the terms. But it is a shock, there is no question, that all of a sudden, boom, in six weeks all these things have happened,” said J. Reid Cummings, a professor of finance and real estate at the University of South Alabama. “It’s like a blitzkrieg.”

This story was originally featured on Fortune.com



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UBS follows Deutsche Bank by banning staff from working remotely on both Friday and Monday

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Swiss banking giant UBS has resisted following remote working hawks like JPMorgan and Goldman Sachs, who’ve mandated a full return to office. It has, however, taken a leaf out of another rival’s approach.

In an internal memo circulated on Thursday, first reported by Finews, UBS told staff they would be required to work from the office at least three days a week. In addition, the bank told its 115,000 employees that they would no longer be able to work from home on a Friday followed by a consecutive Monday.

“Our working approach is office-centric with flexibility, and we ask our employees to be in the office at least three days a week. Spending enough time in the office with colleagues fosters innovation, collaboration, and team productivity,” a UBS spokesperson told Fortune.

The approach is similar to that of Deutsche Bank last year, which, in calling staff back to the office, drew a new line in the sand by banning remote Fridays and Mondays. 

Many workers operating under a hybrid model opt to come into the office between Tuesday and Thursday, working their Mondays and Fridays remotely. Fridays in particular have proved popular among both bosses and employees as the remote day of choice.

The hawkish voices in the remote vs. in-office debate argue this trend has created a habit of lower productivity around the weekend as employees slow down into Saturday or ramp up more slowly to a Tuesday. Manchester United co-owner Jim Ratcliffe ordered his staff back to the office full-time in May last year when he realized email activity plunged on a Friday when most employees were remote.

One problem companies like UBS are more publicly happy to address is space. Many firms vacated office space during COVID-19 in order to cut costs when remote work looked like a permanent solution. 

UBS is no different. In London, the company has consolidated staff at its Broadgate HQ, where it sublet space during the height of remote working, after it also chose not to renew its lease at 1 Golden Lane. During that time, the company also integrated employees from the newly acquired Credit Suisse into its offices, putting a further crunch on space. A move to choose between a Monday and Friday should regulate attendance through the week.

Companies have also been left frustrated by thousands of square meters of office space going unused on the more unpopular Mondays and Fridays.

UBS’s move to balance out office working across the week is understood to be a move to better manage its office space. Deutsche Bank gave the same reasoning last year, with CEO Christian Sewing saying the motivation was to “spread our presence more evenly across the week.”

The latest policy introduced by UBS remains much more liberal than the group’s competitors in the banking sector, most notably JPMorgan. The group mandated a full RTO mandate that began in March. Already, though, staff have complained about inadequate space, poor Wi-Fi, and unwell co-workers.

This story was originally featured on Fortune.com



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Facebook ramps up TikTok battle by letting creators monetize their Stories

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  • Facebook has announced a new monetization program for creators. Facebook Content Monetization is meant to lure creators from TikTok as the company looks to build out its flagship social media property.

With the threat of a TikTok ban fading for now, Facebook is ramping up efforts to get creators to post their work on its platform.

The company has announced a new monetization program that will let creators make money simply by sharing photos and videos on the Facebook site. (Instagram has its own monetization program.)

Applications are being accepted at this website for the program’s beta. And at least one member of that beta program claims to have made $5,000 so far posting videos he would have normally posted without financial incentives.

Facebook has already sent invitations to one million creators to join the beta program, but is looking to expand it. Earnings will be based on engagement, total views, and plays. Public videos, reels, photos, and text posts are eligible to earn money.

Facebook has, for months, been trying to win the attention of creators. While Instagram has a healthy creator community, Meta’s flagship property has had trouble attracting them. In January, the company offered a $5,000 bonus to creators with an existing presence on other social platforms. TikTok remains the most popular destination for creators, but the lingering threat of that platform disappearing has made several of them diversify their outlets.

Over the course of the next year, the new Facebook Content Monetization program will replace Ads on Reels, In-Stream Ads and the Performance bonus programs. As part of the change, the company is streamlining its dashboard for creators to make it easier to see how their monetization efforts are going.

This story was originally featured on Fortune.com



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Struggling consumers skimp on chips and cigarettes as convenience store sales slip

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Consumers are forgoing bags of Doritos and packs of cigarettes as convenience stores across the U.S. face sales declines. It’s another sign of stress for Americans, who are dealing with ever-changing tariff policies, fears of stagflation, and a potential recession.

Sales volume at U.S. convenience stores dropped 4.3% in the year ending Feb. 23, according to data from Circana, a Chicago-based market-research firm, and first reported by the Wall Street Journal. Refrigerated and frozen products, tobacco, and general food sales saw some of the steepest declines.

The sales slip comes as working-class and middle-class households are pulling back spending and overall consumer sentiment is dropping due in part to President Donald Trump’s ongoing trade war and fast-changing tariff policies. Top CEOs like JP Morgan’s Jamie Dimon are becoming increasingly worried about the possible inflationary and recessionary effects of the president’s evolving policies.

There are other factors at play, like higher gas prices, WSJ reported. Though the cost is coming down now, it has been elevated, meaning people have less to spend on a quick snack or drink inside a gas station’s convenience store. And some consumers are looking for healthier options.

And it’s not just convenience items. Consumers say they are planning to pull back discretionary spending in a number of areas, according to McKinsey & Co., including apparel, footwear, and electronics. In general, Americans have less in their checking and savings to absorb higher prices.

That said, Jeff Lenard, vice president of media and strategic communications at the National Association of Convenience Stores, says some of the lost consumer dollars stores are experiencing in packaged food is going toward prepared food in the stores, so not all is lost. Still, he says consumer sentiment is not strong and stores “really need to fight for customers.”

This story was originally featured on Fortune.com



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