The new meaning of office: how hybrid work changes formal organizational structure from a place perspective

Hybrid work has become a central topic in debates about the future of work (FoW). Its rise introduces a dual spatial transformation: employees’ physical workspace extends beyond the office to locations like the home, while work itself shifts from analog to virtual spaces. These spatial changes have the potential to reshape formal organizational structures in ways that are neither planned nor anticipated by organizations. Drawing on a place lens, this study explores how hybrid work influences formal structure, i.e., the prescribed grouping of positions and reporting relationships. We analyzed 49 interviews with employees from two international organizations at two points in time. Our findings reveal an emergent trend toward functional grouping and centralization of previously decentralized HR positions, which may be followed by spatial relocation . We argue that these structural shifts are driven by place re-making activities in both virtual and physical spaces, which redefine employees’ sense of the workplace as being virtual. In this virtual workplace, the spatial manifestation of formal structures dissolves, creating a window of opportunity for organizational decision makers to revise established structural arrangements. At the same time, the virtual workplace falls short in fulfilling employees’ need for social connectedness, prompting a reconstitution of the office as a place of social contact. Spatial relocation then serves a dual function: encouraging social interactions within the newly formed teams and re-manifesting changed formal structures in the physical space.