IWG has revealed it will begin offering a new coworking concept that will be smaller than its current Spaces brand in an effort to accommodate the new normal of the workplace.
The new workspace aims to attract workers who are hesitant to return to their main office after working from home for months, but still miss the atmosphere of a physical workspace.
Companies would be able to use this new platform to set up satellite offices in suburban areas closer to where employees live, helping alleviate the need for public transportation.
“The pandemic has precipitated a meaningful pullback in demand for this month-to-month space as tenants revert to the rent-free work from home alternative,” a report from ASB Real Estate Investments stated.
During the first half of 2020, IWG reported a loss of over $300 million, compared to its $40 million in profits it made the previous year as demand for coworking dwindles.
The company recently threatened to declare its Regus subsidiary insolvent in the UK last month in an attempt to get its landlords to reduce rent.