Kaiser will move 1,200 jobs from Oakland to its Pleasanton campus
Health care giant Kaiser Permanente plans to move about 1,200 office jobs, or 10% of its Oakland workforce, to its Pleasanton campus in 2024. The news comes as a setback for the city as it attempts to boost its economy following the pandemic.
The largest private employer in Oakland, Kaiser said Wednesday the shift is motivated by the rise of remote work since the pandemic began.
“Across our organization, we have shifted to a hybrid model that includes a combination of on-site and remote work. As we continue to support remote and flexible work, our need for physical administrative space is significantly reduced and we are right sizing our campuses,” the company said in a statement.
The loss of downtown jobs could put further strain on Oakland. The city is potentially facing a $200 million budget deficit over the next two years due to growing expenditures.
Oakland isn’t alone in trying to bounce back after the pandemic: San Francisco also has struggled to boost its downtown economic core after businesses went remote, with many office buildings still mostly empty.
Oakland Mayor Sheng Thao acknowledged in a statement that COVID has affected businesses in the city.
“We understand remote work has changed the workplace dynamic for many businesses, but Kaiser has made clear their commitment to Oakland and investments in Oakland remain strong,” Thao said. “I look forward to continuing to partner with Kaiser.”
Barb Leslie, the president of the Oakland Chamber of Commerce, agreed in a statement that Kaiser is still committed to Oakland.
“While the reduction of our downtown daytime workforce continues to present challenges to our business ecosystem, the Metro Chamber applauds Kaiser’s steadfast commitment to the City of Oakland and the continued presence of their national headquarters and Oakland Medical Center,” Leslie said. “Decisions like these are not easy, but we understand the necessity as the complexity of running a business in a postCOVID environment continues to prove challenging.”
At a Feb. 1 event for the city’s business community, the mayor said her administration will focus on boosting the economy by bringing more jobs to the city. She said COVID exacerbated existing problems and created new ones — from a slowing economy, an empty downtown and public safety concerns to increased homelessness and rising housing costs.
“It’s easy to throw up your hands and say you know, forget it, let’s just leave, let’s go to a different town,” Thao said in front of the Oakland Chamber of Commerce, developers and other companies. “But if you want to know one thing about me … I never give up. I’m determined to do the hard work.”
Kaiser said in a statement its headquarters will remain in Oakland. Employees who work in the company’s national offices will start working in Oakland’s Ordway building.
In 2020, the company scrapped plans for a $900 million headquarters in Oakland, a huge blow for the local economy.
The project would have built a 1.6 million-squarefoot office tower that would have been the city’s biggest commercial project.
Kaiser said in a statement Wednesday that its medical center and care delivery facilities won’t be impacted by the change.
“As we continue to support remote and flexible work, our need for physical administrative space is significantly reduced and we are right sizing our campuses.” Kaiser Permanente