After WeWork’s collapse in the US, do shared office spaces have a future?

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Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. the way forward / ðə weɪ ˈfɔr wərd / (idiom) – an action or plan that’s likely to become successful
    Example:

    We support digital learning because we believe it’s the way forward.


  2. oust / aʊst / (v.) – to cause or make someone leave a position of power
    Example:

    The president was ousted because of his connection to illegal activities.


  3. erratic / ɪˈræt ɪk / (adj.) – acting or changing in ways that are not consistent or expected
    Example:

    The singer’s performance was erratic. Sometimes she’s good, sometimes she’s not.


  4. exorbitant / ɪgˈzɔr bɪ tənt / (adj.) – more than what is fair, reasonable, or expected
    Example:

    They weren’t able to watch the concert because of the tickets’ exorbitant cost.


  5. dynamic / daɪˈnæm ɪk / (n.) – something that causes change or growth in something else
    Example:

    The changing dynamic of workers choosing remote work has affected company policies.


Article

Read the text below.

After WeWork filed for bankruptcy in the US last month, attention is turning to the shared or flexible workspace industry. Are they doomed or do they still have a future? Since the pandemic, people’s ways of working have changed dramatically. Shared offices say they’re the way forward.


WeWork, once valued close to $50 billion, filed for Chapter 11 bankruptcy protection in the US on 7 November. It’s a stunning fall for the office-sharing company that once promised to upend the way people went to work around the world. 


It’s an aggressive expansion in WeWork’s early years that led to the bulk of its current troubles. Its former CEO was ousted because of claimed erratic behavior, exorbitant spending, and a failed attempt to go public.


But the company has struggled in a commercial real estate market that has been rocked by the rising cost of borrowing money, as well as a shifting dynamic for millions of office workers now checking into work remotely.


So is the shared office market doomed? London-based WeWork competitor Work.Life says they’re here to stay. 


“(The) main lesson that we’ve learned from WeWork and they’ve done lots of good for the market is it’s about quality, not quantity. And so for us, as we look to expand, it’s about doing it with the right deals, with the right landlords, and in the right locations. You look at these hotel businesses, they’re taking decades to build, and I think it’s a marathon, not a race,” says David Kosky, co-founder of Work.Life.


Work.Life currently operates 15 shared office locations in the UK, mostly in London, and aims to reach 18 by the end of the year.


In a statement from 6 November, WeWork said its locations outside of the US and Canada “are not part” of the bankruptcy process.


This article was provided by The Associated Press.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • How have people’s ways of working in your country changed since the pandemic? Did you feel that your way of working changed as well? Why or why not? Discuss.
  • Given the chance, where would you prefer to work: in your company’s office, at home, or in a shared office? Why? Discuss.

Discussion B

  • Do you believe the shared or flexible workspace industry is doomed after WeWork’s bankruptcy, or is it still the way forward? Why? Discuss.
  • Do you think office-sharing companies will make a good profit in your country? Why or why not? Discuss.