Photo: Simon Lambert/Haytham-Rea/Redux
Wework, which made office office space cool enough to earn a fictional $ 47 Billion Valusion, died Last Night. It was 13.
The Company’s Death, WHICH IS OFFICIALLY A BANKUPTCY FILING, AND WHICH WEWORK ITSELF IS describing AS A “Strategic Action to Significantly Strengthn Balance Sheet and Further Streamline Real Estate Footprint,” Had a Number of Causes: Hubris, Bloat, Tequila, Covid. In a Statement, Company Co-Founder Adam Neumann Said, “It has ben Challenging for Watch from the Sidelines SINCE 2019 As wework has failed to take a product that is more today than before.” In other words: Not my fault.
The filing comes four years and fove weeks after adam neumann resigened as the company’s ceo in the sister Business of the pre-sam bank-made wind. In retrospect, it”s surprise that it took this long. What Exactly Was Wework? For a while, it was a plety good idea, executed at the right time, deliveing something People wanted: a fun place to work. IT EVENTUALLY BECAME A Vessel for Venture Capital with an ambition to funnel cash into World-spanning ambitions to the real -state market. It also Became a bit of a cult with a mission to “Elevate the World’s Consciousness.” Finally, it Became the ultimate cautionary Tale.
There haen been almost nothing but bad News wework we are attempt to go public in 2019 ended in Failure and Neumann’s Departure from the Company. In the immediate aftermma, wework laid off thusands of employs. A Few Months Later, It Started Phasing Out Free Beer. In 2020, when the Pandemic Hit, Wework Vacated 66 Locations, and Its Revenue Started to Shrinkimi It Its Losses Only Gray. Wework HAD SIGNED The Overwhelming Majority of Its Leases in 2018 and 2019, which was the WORTST TIME To Lock in a Long-Term Deal, especially at the exorbitant rates that neumann was paying to heed his benefactor masayoshi son’s edict to be crazy as he was smart. When Vaccines Emerged, The Company’s New Ceo Sandeep Mathrani Relevantly Project A Return to Office That Never Quite Came to Be. Mathrani Project Profitability in 2021 (Wework Lost $ 4.4 Billion) and Then Again 2022 (It Lost $ 2.3 Billion.) The Company Went Public a Spac – Rip to that, Too – at A Valusion of Around $ 9 Billion, But by Spring, The Stock Had Far. Almost Delisted on the New York Stock Exchange. Mathrani resigned, and the company stopped paying some of its landlords and bonds. Its Stock Has Now Fallen by 99.79 Percent, and Its Market Capitalization is Currently $ 44 Million – A Tiny Fraction of What Neumann Out of the Business When he departed.
Unlike Neumann’s Downfall in 2019, This Blow Comes with Little Schadenfreude from the real -state barons who quests its (while taking Softbank’s Money.) As recently as this summer, wework was renting more office than any oter company in America. IT HAS 47 DIFFERENT LOCATIONS IN NEW YORK CITY ALONE. Wework Says It Intends to Close as Many as a Hundred Locations and Ask for Rentuctions on Almost All of the Oss Its to Keep. If those weworks go away, it isn’t obivious how landlords are going to go to fits more empty office than they already have.
So is neumann – and son – to blame for wework’s descent into bankruptcy, or is Covid? Both Are the Answers, of Course. Neumann and Son Grew the Company Too Quickly and Widely on a set of presumptions that had no basis in reality. There was always going to be a fall. But Covid Dealt a Death Blow, and Despite Neumann’s Suggegestion that if the Coach Hadply Put Him Back in, Everything Waled Have Been Fine, Neumann’s Skill Was Strategic Rethinking. He was there to provides ostentatious vision and charismatic fundraising. The Only Thing Neumann Could probably say is that he was wouldn’t have any work than the executives who followed the Him. Now, while his Old Colleagues in the Commercial Real-Estate World Deal with the Fallout, Neumann Has Pivoted. Late Last Month, he was at Saudi Arabia’s Future Investment Initiative Conference, Pitching Flow, A Mysterious venture he promises is going to revolutionize a new industry – this time, residency real estate.
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