Knotel Is Considering Slashing Its Global Portfolio
The Real Deal reported earlier this week that flexible workspace provider, Knotel, “is looking to trim 60percent of its 4.8 million-square-foot global portfolio, and slash its leases in the US and Canada from 3.4 million square feet to just 500,000 square feet.” According to reports, Knotel’s goal is to lower its rent obligations in the hopes of bringing its revenue up. The flexible workspace firm has been struggling this year; it’s been sued several times for late payments and it has let go of over 20% of its staff. The company is also reportedly hoping to switch to management agreements.
IWG’s Spaces Partners with EY Norway
IWG announced this week that its coworking arm, Spaces, has partnered with EY to create a first of its kind hub and spoke workplace collaboration. According to the release, IWG has partnered with EY Norway to “see the integration of Spaces with EY’s new HQ in Oslo.” The partnership will provide EY employees with access to IWG’s meeting rooms and coworking facilities across the world. EY Norway’s HQ will be located in Spaces’ upcoming location in Stortorvet, which is slated to open in early 2023.
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WeWork Continues to Burn Cash
The Financial Times reported this week that “WeWork burnt through another $517m in its latest quarter.” According to company statements, WeWork’s outflows in the third quarter reduced its cash cushion to $3.6bn; this figure stood at $4.1bn in the quarter before. Since the start of the year, WeWork has burnt through $1.7 billion; however company executives still hope that WeWork will generate positive cash flow next year. Nonetheless, sales continue to slow for the coworking company due to the coronavirus pandemic and WeWork has laid off thousands of workers, shut down locations, and sold assets in the hopes of cutting costs.Share this article