Japanese lender Mizuho Financial Group has reportedly decided to cut its office space in Singapore as the work from home policy yielded better than expected results.

The bank is planning to cut nearly 16 % of workspace at Asia Square Tower 2 in the financial district, Bloomberg reported citing sources familiar with the matter.

This is equivalent to less than one floor, out of the four floors – measuring about 105,000sqft – occupied by the bank.

Mizuho is said to be an anchor tenant in the building, which is owned by CapitaLand Commercial Trust, the report added.

Apart from cutting down office space, Mizuho is also looking to redesign its Singapore office.

According to Bloomberg, the bank aims to cater to the needs of its younger employees by creating more open, and communal workplace.

Additionally, as part of its business continuity plan Mizuho is also planning to make better use of its backup office at Changi Business Park, where it occupies 200,000sqft of office space.

Trimming the office space will reduce costs for the bank, however, sources suggest that cost-cutting was not the bank’s objective.

Moreover, the bank did not signal any job cuts as well.

The latest move is in line with the bank’s aim to revamp its workplace in global financial centres amid the Covid-19 pandemic.

As of September 2020, only about 40% of the bank’s employees are working from office, according to Bloomberg.

Last month, reports emerged that Mizuho is planning to allow its employees to work in shorter weeks on a reduced pay amid the Covid-19 pandemic.

Earlier this month, Mizuho planned to sell data on consumer spending habits to boost its business.