Marcelo Claure, chairman of WeWork, says that the company will bring positive cash flow by 2021 thanks to several cost cutting measures it has taken.
Among those measures were massive layoffs and selling off acquisitions it had recently purchased. However, competition in the coworking industry remains tough and the high-risk company has not had the best track record thus far.
Other operators competing in this industry include Spaces, as well as office supply retailer Office Depot. In short, WeWork will need to make big changes to set itself apart from the crowd and instill trust in skeptics.
Still, the current pandemic may benefit WeWork and the rest of the coworking industry as companies look to adopt a distributed workforce. While workers may continue working from home, some may want an office closer to where they live. That is where coworking spaces perfectly fit in.
Offering a larger variety of workspaces can help appeal to a wider range of workstyles as well. Even beyond the pandemic, some may prefer taking a short 5 minute commute, while teams may come together every now and then for in-person meetings.
Whether it’s a corporation looking to downsize, or a small company looking to reserve a meeting space for its team, coworking spaces offer a wide variety of arrangements. WeWork has a headstart in this race, but competition in a post-pandemic world will only ramp up from here.
