It’s even simpler than that: they leased the office space and have to continue to pay that lease or else pay an early termination fee. This is basically the sunk cost fallacy. But you are right that sometimes additionally they get tax breaks for certain office space, for instance the San Francisco mid-market tax break (AKA the Twitter tax break)
It’s even simpler than that: they leased the office space and have to continue to pay that lease or else pay an early termination fee. This is basically the sunk cost fallacy. But you are right that sometimes additionally they get tax breaks for certain office space, for instance the San Francisco mid-market tax break (AKA the Twitter tax break)