The decline digital nomad

[UNITED STATES] As companies enforce stricter return-to-office policies, the dream of working from anywhere is becoming increasingly difficult for U.S. professionals.

The Rise and Fall of the Digital Nomad Dream

The allure of the digital nomad lifestyle—working remotely from exotic locations around the globe—has captivated many Americans since the onset of the COVID-19 pandemic. However, as of 2025, this once-thriving trend is experiencing a significant decline. Factors such as increased return-to-office (RTO) mandates, stricter immigration policies, and economic uncertainties are making it more challenging for U.S. workers to maintain their remote work abroad lifestyles.

According to data from MBO Partners, the number of U.S.-based digital nomads dropped from 16.9 million in 2022 to just under 11 million by early 2025. Analysts attribute this decline not only to corporate RTO policies but also to the changing attitudes of middle managers and executives who are now prioritizing team cohesion and measurable productivity over geographic freedom. Once considered an innovative perk, location independence is now viewed by some organizations as a liability in a post-pandemic economy that demands tighter oversight.

Return-to-Office Mandates Reshape Work Culture

A notable shift in corporate policies is contributing to the decline of digital nomadism. Many companies, including major U.S. firms, are enforcing strict RTO policies. For instance, JPMorgan Chase CEO Jamie Dimon has expressed skepticism toward remote work, arguing that it undermines productivity and company culture. Dimon believes that remote work hinders innovation and slows decision-making, particularly affecting younger professionals who miss out on mentorship opportunities. As a result, JPMorgan implemented a five-day return-to-office mandate in January 2025, with about 10% of its workforce still working remotely.

Similarly, a KPMG survey found that 79% of CEOs of large U.S. companies expect their employees to return to the office full-time within the next few years. This shift is leading many professionals to reconsider their ability to work remotely from abroad.

Remote workers who managed to stay abroad during earlier phases of the pandemic are now reporting increased pressure from HR departments to comply with in-person expectations. Some digital nomads are finding themselves at odds with visa expiration dates, tax residency thresholds, and employment compliance issues that didn’t arise during the looser oversight of 2020 and 2021. As a result, many are being forced to choose between maintaining legal employment status or continuing their global lifestyle.

Economic Factors and Immigration Challenges

Economic uncertainties and stricter immigration policies are also playing a role in the decline of digital nomadism. The so-called "white-collar recession" has led to job cuts and reduced opportunities in sectors like tech and architecture, which were once popular among digital nomads. Additionally, countries that previously offered special visas for digital nomads are now facing declining interest due to the logistical, legal, and tax complexities of working across borders.

Several governments that had initially embraced digital nomads as a source of tourism revenue are now reassessing the long-term viability of such programs. Portugal, for example, has tightened residency requirements amid concerns about housing shortages and inflation linked to foreign remote workers. Similarly, Bali has introduced new reporting requirements and visa documentation that make it harder for foreign workers to stay without a formal employment arrangement based in Indonesia. These changes reflect a broader shift away from the open-door policies of the early 2020s.

The Future of Remote Work

While the traditional digital nomad lifestyle is waning, remote work itself is not disappearing. Many companies are adopting hybrid models, allowing employees to work both remotely and in the office. Experts predict that hybrid careers will become more prevalent in the 2025 work environment. For example, Felix Kim, CEO of Redrob, believes that companies that force employees to return to the office full-time risk losing top talent, as many professionals now prefer the flexibility of hybrid work.

In response to these evolving trends, coworking providers and digital nomad platforms are pivoting their business models. Services once geared toward long-term travelers are now catering to short-term remote work retreats and hybrid employees looking for periodic escapes. WeWork, for instance, has seen a modest resurgence in interest for flexible office access packages that accommodate part-time travel rather than full-time nomadism. This shift suggests that the demand for flexibility remains, albeit in a more grounded form.

The digital nomad lifestyle, once a symbol of freedom and flexibility, is facing significant challenges in 2025. Return-to-office mandates, economic factors, and immigration complexities are making it increasingly difficult for Americans to work abroad. However, the evolution of remote work into hybrid models suggests that while the traditional digital nomad lifestyle may be declining, the broader trend of flexible work arrangements is likely to continue.