IWG remains optimistic about the future of the serviced office industry despite taking a £156 million hit recently due to shutdowns.
The company will cut 130 of its 3000 sites due to them being less profitable at a cost of £126.7 million, while also taking another £29.1 million charge for anticipated credit losses, transaction costs for delayed deals, restructuring and more.
Now, the company maintains that it will be able to grow its network by serving suburban areas as more people seek to work closer to their home. Currently, the firm has a few locations in London suburbs such as Hemel Hempstead and Hayes.
“More companies will have distributed workforces with more satellite offices, more employees working closer to home or continuing to work from home,” said Mark Dixon, CEO of IWG. “With our decentralised portfolio of workplace locations in over 1,100 towns and cities, both urban and suburban, we are uniquely positioned to help companies adapt to a new world of working.”