Reports have revealed that Knotel has laid off up to a third of its New York office this week. Nearly 20 people were fired from the flexible office firmโs 22 West 38th location, which once had between 50 and 60 employees.
A spokesperson for the company confirmed that layoffs had happened, but that it was much less than a third of the New York office.
โKnotel has grown from two employees in one city to 500+ people in 17 cities over the past four years to become the leading global flexible workspace platform,โ a statement from the company said. โOur business will continue to evolve and change to best meet the needs of our customers.โ
Employees that were let go include sales representatives, customer service employees, a construction project manager and three workers that were part of the companyโs furniture business, Geometry.
The company has experienced high vacancy rates and according to Crainโs, had 800,000 square feet of vacant space in New York toward the end of last year. Additionally, CNBC confirmed that the companyโs leasing activity had dropped 80% in the fourth quarter of last year to 67,000 square feet.
This news comes just months after the companyโs biggest competitor WeWork laid off hundreds of its employees.
โThere was a lot of shade thrown on other businesses,โ said a former Knotel employee said. โBut it was the exact same business model.โ
