The ongoing pandemic has unsurprisingly caused the flexible office industry to take a significant hit, especially household names like WeWork and Knotel.

Since the beginning of July, Knotel has faced several lawsuits from landlords claiming the company owes a total of $1.6 million in unpaid rent, while WeWork is shifting its focus from small startups to large enterprises.

“(Knotel is) always evaluating and adjusting our portfolio to best meet the needs of our customers, through Covid-19 and beyond, and we have reached positive resolutions with many owners,” a company spokesperson said. “We take our landlord relationships very seriously, and will continue to actively engage with them to achieve good outcomes during these challenging times.”

Meanwhile, WeWork has reportedly addressed its setbacks by catering its services to large clients, which now make up 65% of the company’s customer base. According to WeWork CEO Sandeep Mathrani, this is to boost the company’s sales and allow it to become profitable.

Despite the company’s new strategy, the industry as a whole is currently struggling as companies continue to operate remotely and are avoiding taking up workspace in the midst of economic uncertainty.