Amazon (NASDAQ:AMZN) is reportedly looking to reduce its office vacancies and save $1.3 billion in the process by letting leases expire, negotiating early terminations, and ending the use of some floors in its current offices, according to Business Insider (BI), which cited a source familiar with that matter and internal documents obtained by BI.

The news comes as the commercial real estate market has already taken a beating over the last couple of years. It has faced significant challenges since the Covid-19 pandemic, which ignited the widespread adoption of remote work arrangements. With many companies transitioning to remote work models, the demand for office space has plummeted, leading to high vacancy rates in urban centers and traditional business districts.