Fund manager Schroders becomes the first major firm in London to ask its workers to work from home, even after the pandemic is over, according to a report by Daily Business group.
Schroders, which recently overtook Standard Aberdeen Life to become Europe's biggest listed manager, has over 5,000 employees worldwide.
While there are currently no plans to close its offices in London, Chief Executive Peter Harrison had said that the pandemic had accelerated the move towards more flexible working by 20 years.
Its decision to move towards working from home permanently could prompt others to follow suit, the report said.
According to the report, Schroders' plan to change working patterns was revealed in an internal staff memo seen by the Daily Telegraph. This represents a major shift in the traditional nine-to-five working arrangement.
A transition towards home working would benefit the transport system which has struggled for years to cope with congested trains and roads. Fewer commuters will mean more comfortable and reliable journeys, with an accompanying reduction in stress and pollution, the report said.
According to the report, The Bank of England has become concerned over the low level of activity in the City of London, while some have seen the shift towards home working as an opportunity to cut costs.Offices are also expected to become places where people meet for physical group interaction and meeting clients while day-to-day work is done remotely, the report said.