By removing private offices and walls, workers were meant to be happier and more collaborative, but research shows open plan spaces have the exact opposite effect.
Studies have found people are less productive, more frustrated, use email or instant messenger rather than actually talk to colleagues, and retreat from interaction by wearing headphones.
A review of 15 different research projects by the University of Canterbury last year found people also get sick more often because germs spread faster in open spaces.
The annual 50 Best Places to Work list, which ranks the top companies in Australia on a range of measures, has found open plan offices are on the way out.
Data from their analysis showed the number of companies reporting open plan environments was 40 per cent in 2018, down from 56 per cent last year.
Zrinka Lovrencic, managing director of Great Place To Work, said businesses were moving towards what's called 'agile' and 'activity based' spaces for their staff.
But it's not necessarily a move towards something better, she said.
Essentially, the increasingly popular concept of hot-desking sees staff keep belongings in a box and sit at whatever desk is available each day.
Companies who reported having agility focused layouts in 2018 increased nine per cent on last year to 42 per cent.
"Where it works well is for people who have a role where they're not in the office all day, every day, like technicians or sales people," Lovrencic said.
"For people who are in the office every day, who work on projects with the same people, who are part of a team, it can be very problematic. We're starting to see an issue crop up where productivity is impacted."
Workers also often lose a sense of belonging when they don't have a regular spot or "home" in the office.
"The driving force behind these changes is saving money on real estate. Research shows that on average only 80 per cent of a workforce is in the office each day," she said. "There are some things that are helped with open plan, but it has to be very well thought-out because it can either be a help or a hindrance."
Lovrencic said there was no one ideal office layout, but instead design should be determined on a case-by-case basis.
It depends on individual organisations, what it is they do, how they work and what they're trying to achieve by the office layout.