WeWork Pivots To Large Enterprise Tenants
Over the past few years, WeWork has focused its efforts on large enterprise tenants rather than freelancers and startups it started off with.
Now, companies with over 500 employees accounted for more than half of the company’s revenue in the second quarter.
“If you want to continue to grow faster, the additional demand comes from enterprise businesses,” said Sandeep Mathrani, WeWork CEO.
Since the start of the ongoing pandemic, smaller companies have been deserting their coworking space, making it necessary for operators like WeWork to court large tenants.
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According to accounting firm Kruze Consulting, half of its venture-funded customers that were WeWork members abandoned their space between December 2019 and June of this year, while over a quarter have decreased their space takeup.
Despite the company saying it’s on track to become profitable by the end of next year, the pandemic has caused WeWork to take a massive financial hit.
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