WeWork offers real estate solutions that are eco-friendly and self-sustainable. They also have some of the best real estate designs. WeWork currently has some of the biggest investors and is touted to be one of the fastest growing firms in this decade.
The simple but efficient approach of WeWork to real estate marketing has seen them attract a consumer base in excess of twenty-five thousand since business kicked off nine years ago. WeWork offers collaborative office spaces which make up almost 20% of its total consumer base.
WeWork has also put a lot of professionals under their employ as they boast of having thousands of architects and engineers working for them around the clock in more than thirty countries. There have been some good times for WeWork in recent years, but WeWork has also been on the wrong side of the news for more than one occasion. These problems which have caused negative reports to come from the WeWork camp have caused a lot of shake-ups in the administrative and organizational framework of the company. This aspect will be later described in detail.
WeWork’s development into one of the fastest-growing real estate firms can be described as astronomical. This has brought some up and down sides to the company, as we would be seeing shortly.
The Upside of WeWork:
Quick paced development:
The pace at which WeWork developed from 2010 through till this present day is what most start-ups dream of. Valuation of the office and other real estate management spaces put the total square area of WeWork’s services to be in the millions. This company now has offices all over the world where their services are present and are currently expanding on every side.
Big investment base
Another upside for the WeWork Company is its large investment base. WeWork has some of the biggest investors any company can dream of. Investors like JP Morgan Chase, Goldman Sachs and a host of other companies are currently shareholders in the real estate firm. These firms have in the past provided a lot of administrative advice alongside their financial responsibilities, and the most notable action of the investors was triggering the removal of Adam Neumann and other staff from the company’s board. They are also very much involved in the administrative shake0up currently restructuring WeWork for the best.
The Downside of WeWork:
As there are numerous upsides to the WeWork story, so also there are downsides to the rise of the firm. These incidents have taken place in the WeWork setup causing some major changes along the way.
The WeWork idea is one of the brightest concepts to hit the global real estate scene. WeWork was developed by two individuals to provide the best and smartest real estate services to clients, but when firms begin getting larger and gather more investment capital, the lure of failing to be a good administrator can only be surpassed by wise decision making. The top level management problems of WeWork led to the filing for bankruptcy in mid-2019. This sparked outrage from investors and caused some heads to roll in the WeWork top management structure. The first casualty from top management regarding the bankruptcy issue was Adam Neumann, one of the founders of the company. There have also been agreements to lay off at least two dozen family members of top level management staff and other structural adjustments in the WeWork administrative setup. The reason why these shake-ups were made necessary was because of the poor decision making of the top echelons of the company, and the investors who are some of the best financial institutions around had to use their collective power to oust the bad administrators.
The WeWork Company has announced that at least three thousand workers will need to be laid off as part of its re-structuring process. This has sparked another round of negative reviews associated with the company that has had to go through a lot over the past two years.
The WeWork Company also intends to sell off some of its businesses that are believed to be under-performing investments. These sell-offs may reap benefits in the future and seem to be decisions hurriedly made.
The latest news on WeWork shows that a Japanese financial institution has decided to bail out WeWork to the tune of almost £6 billion. This figure is reportedly meant to cover new financing and cater for existing shareholders. This may be a temporary breath of air to the WeWork setup, but as we all know nothing good ever comes from negotiating when you are hungry. WeWork has agreed in turn to cede some level of control to the bail-out provider, Softbank.
Problems with building equipment:
Many office spaces of the WeWork Company have experienced customer complaints of being irritated by a chemical odour. This odour was discovered to be emanating from the industrial chemical Formaldehyde which is used in some industrial construction work. This hasn’t raised much attention as fixes have been put in place to prevent such from ever-occurring.
WeWork has the potential to continue growing and generating more investments and profits. The company has the resources based on its restructuring policies from within. These advancements in the WeWork setup has started to reap benefits based on its additions of new office spaces in Manila, Singapore and Haifa.