The Decline of Remote Work in Japan
The return to office hybrid trend is reshaping Japan's work landscape. Six years after the pandemic forced a global shift to remote work, companies are pulling employees back. A survey by the Japan Productivity Center found that only 14.5 percent of 1,100 employees worked remotely in July 2024. This figure is more than halved from 31.5 percent in May 2020, when the first such survey was conducted after the pandemic began.
This sharp decline signals a broader move away from fully remote arrangements. Yet the shift is not a simple return to pre-pandemic norms. Instead, many organizations are adopting a hybrid work model that blends office presence with remote flexibility.
High-Profile Mandates and Backlash
GMO Internet Group Inc. made headlines in July 2024. Chairman and group CEO Masatoshi Kumagai announced on X that the company would “completely abolish recommending” remote work for its group companies. He assessed remote work as “a minus overall,” citing poor communication and lost informal learning opportunities.
The post backfired. Kumagai referenced a decline in keystroke logging among remote workers, which critics saw as an attempt to monitor employees. A week later, he clarified that he “did not mean to deny remote work as a new work style.” In an interview with The Asahi Shimbun, he backtracked further, stating the policy does not prohibit remote work across the board. Individual group companies can decide their own rules.
LY Corp., an internet and tech firm, faced similar resistance. In April 2025, the company instructed workers to come to the office one day a week or month, depending on their department. From May 2025, employees must work in the office three times a week. An LY official cited benefits like collaborations through small talk and swifter decision-making. But employees reacted strongly. “There was a fierce resistance to the company’s abrupt policy change,” said one employee. “One of my colleagues decided to quit.”
Hybrid Work as a Compromise
Not all companies are mandating full-time office work. NTT Group, a major telecommunications and IT holding company, stopped requiring office work in July 2022. Of its 190,000 employees, 53,000 can live anywhere regardless of office location. Travel expenses, including Shinkansen bullet train fare, are covered as business trips when they need to come in. The number of employees living apart from families due to transfers decreased by about 1,600.
Many NTT employees work in the office two to three days a week on average. The decision is left to each workplace. “The satisfaction of employees is high,” an NTT Group official said. “Our approach is contributing to our group’s strength, and we will continue to incorporate upsides of both remote work and in-person work.” Surveys show higher employee engagement and better talent attraction.
Fujitsu Ltd. offers another example. Since 2020, employees can choose remote or in-person work. Today, an average of 20 percent work in the office. Operating profits per employee jumped 89 percent from fiscal 2022 to the end of fiscal 2025. Most conferences are now conducted via video, saving time and speeding decisions. “We are able to use time more efficiently and our decision-making processes have become faster,” said Mitsuya Akamatsu, head of Fujitsu’s Work Style Strategy Office.
Challenges of Hybrid Work
Hybrid work is not without problems. Akamatsu noted it is becoming more difficult to detect small changes in teams with both remote and in-person staff. Middle managers bear more responsibility for checking on operations and how subordinates cope at home. Remote work also risks extending hours by blurring the line between work and nonwork time.
Labor unions are pushing back. The Federation of Information and Communication Technology Service Workers of Japan has advocated since the 2024 spring labor offensive for “the right not to get connected.” The Japanese Electrical Electronic & Information Union demanded designated hours when video conferences will not be held. They also called for dialogue on work styles that leave room for creativity and mental health.
Hiroki Sato, professor emeritus at the University of Tokyo, argues that problems attributed to remote work stem from poor management, not the work style itself. A study of around 1,300 managers found that workplaces where managers complained about productivity drops often allowed workers to turn off cameras during online meetings. “Some managers have confused decreased productivity with remote work,” Sato said. “The real issue, however, stems from a lack of defined guidelines.” The study showed 45.8 percent of workplaces had no explicit guidelines for online meetings.
Performance Standards and Evolving Strategies
Makiko Hagihara, a senior researcher at Recruit Works Institute, found that employers maintaining remote work systems create clear performance standards. Many remote workers feel empowered to manage their own assignments. Some companies optimize productivity with fewer in-person days. For example, new sales hires dispersed across the country are brought in to accompany experienced salespeople on client visits for mentoring.
“Whether remote or in-person work is better depends on corporate business strategy and organizational challenges,” Hagihara said. “The best approach is not fixed but evolves over time.”
The return to office hybrid trend is still unfolding. Companies that enforce rigid mandates risk losing talent. Those that embrace flexibility may find a sustainable balance. The key lies in clear rules, strong management, and a willingness to adapt.
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