WeWork members are noticing cost-cutting throughout London offices, exchanging the more expensive items for cheaper alternatives. This comes in the aftermath of an incredibly challenging year for the company, all starting from their attempt at an IPO last August.
In only a month, WeWork had its valuation significantly cut down from $47 billion to as little as $10 billion, removed their CEO and co-founder Adam Neumann, and laid off 2,400 employees. Since these difficulties, the listing has been delayed indefinitely, now being taken over by Softbank, with a new CEO appointed – Marcelo Claure.
Claure has since outlined a plan for profitability, focusing on the “core business” rather than its side projects, the core business being office rentals. Whilst although the company have claimed to be focusing on their office rental projects, members in some of these offices around London have begun to notice a decline in the quality of their workspaces; being in the form of cuts to various different office features.
What Items Have Been Cut?
Members in WeWork offices across London have begun to comment on cuts they’ve noticed around the workspaces, including downgrades to the books. Members have commented that nice books including fancy travel guides and books on architecture have been replaced with second-hand, trashy biographies and other “off-vibe” topics.
Whilst numerous members in these London WeWork offices have commented on this replacement, WeWork have denied claims that they have introduced cheaper books.
In addition to the books, members of WeWork offices around London have also noticed their mugs have been replaced with smaller ones. Others have claimed the milk has been replaced with a cheaper brand, and that the unlimited free beer tap is now limited. One member has commented that their free beer is now only available during certain periods of the day, and only on selected floors.
Some have also noticed less WeWork staff and security, with one member claiming that their office has reduced security during the night, and now does not have security throughout the day at all. Members have noted the cut in cleaning hours too, with buildings now seeming messier than they were before.
Next steps for WeWork?
Whilst these supposed cuts could be WeWork attempting to pick up the pieces from a nasty fall in valuation and reputation, the claims made by multiple members across London may cause further damage to its image and customer satisfaction rates.
We may see a slow exodus of tenants from WeWork to other rivals such as LABS and Spaces or individuals may use relocation agents to find the best office spaces for them.
Although only a change in milk here and reduced cleaning staff there may not seem like much, with all the cuts combined members are experiencing a noticeable decline in the quality of their workspaces, which could lead to damaging reviews and a reduction in clients.