Serviced office provider Knotel has revealed that nearly one-third of its members are looking for a break on rent as the company experiences major income losses coming from tenants.
The company has taken some steps to reduce costs recently, including laying off 30% of its staff and furloughing another 20%. It is also in talks to give back 20% of its office space and has currently stopped paying rent at multiple locations.
Despite these issues, CEO Amol Sarva said the company expects to be profitable later this year and will be more conservative in its new acquisitions. Additionally, the firm is projecting to double its 2019 revenue this year, having finished the first quarter with $370 million of annual revenue compared to $100 million at the beginning of 2019.
Sarva anticipates that clients will return to work by mid-May and June depending on their location and is prepared for new customers to move in that are opting for more flexible office space.
