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16 Reasons WeWork Failed, But Coworking Lives On
Why WeWork Failed — And What It Means for Coworking
The popular coworking space WeWork has had its valuation fall by 90% and its IPO cancelled. I explain why that happened and what it means for the coworking industry.
Journalists Peter Eavis and Mike Isaac recently reported in the NY Times that WeWork is collapsing, with impending layoffs of a third of its workforce:
“ WeWork is preparing to cut at least 4,000 people from its work force as it tries to stabilize itself after the company’s breakneck growth racked up heavy losses and led it to the brink of collapse.” — Nov. 17, 2019
While the final number may only be 2,400 layoffs (reported Nov. 21, 2019), or about one-fifth of its work force, WeWork appears to have failed as the spectacular growth company it once appeared to be.
But with coworking widely reported to be “the new normal” — why did WeWork fail, and what does it mean for coworking?
In this article, I discuss 16 different reasons for the failure of WeWork.
Then, I examine the implications for the coworking industry and identify takeaways for people who work in coworking spaces.
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Disclaimer: WeWork has not failed (yet?)
Yes, WeWork still exists, and will continue to exist — it looks WeWork is not going anywhere anytime soon.
When I say “WeWork failed,” I mean that its IPO got cancelled, and its prospects are not as rosy as they were once thought to be.
So, the body is still alive on the table, but let’s skip to the autopsy!
Here are my 16 reasons why WeWork failed, with lessons for anyone interested in…
