WeWork

WeWork Inc.
Company type	Private
Industry	Coworking spaces, real estate services
Founded	2010; 16 years ago
Founder	Adam Neumann, Miguel McKelvey
Headquarters	New York City, United States
Area served	Global (125 urban centers)
Key people	Cupar Grimmond (majority owner), Masayoshi Son (investor)
Products	Coworking environments (physical and digital)
Owner	Cupar Grimmond (60%), SoftBank affiliates (20%), other investors (20%)
Website	wework.com

WeWork Inc., based in New York City, operates coworking environments—both physical and digital—across nearly 600 properties situated in 125 urban centers.

Established in 2010 by Adam Neumann and Miguel McKelvey, WeWork accumulated $12.8 billion in funding over ten years, achieving valuations as high as $47 billion, largely fueled by investments from the SoftBank Vision Fund under the leadership of Masayoshi Son. The company initiated an IPO process in 2019 but retracted it due to issues related to corporate governance, which resulted in Neumann stepping down. Subsequently, WeWork went public through a SPAC deal but filed for bankruptcy protection in November 2023.

During the 2024 bankruptcy restructuring, Cupar Grimmond (linked to Yardi Systems) acquired a majority 60% ownership, SoftBank affiliates retained a 20% share, and other investors took the remaining 20%. The enterprise underwent significant downsizing by divesting owned assets and renegotiating or terminating numerous lease agreements.

2008–2015

In May 2008, Israeli entrepreneur Adam Neumann partnered with American Miguel McKelvey to create GreenDesk, an environmentally conscious coworking space located in Brooklyn. After selling GreenDesk in 2010, they founded WeWork and launched their inaugural site in SoHo, Manhattan, in April 2011. Real estate developer Joel Schreiber from Manhattan purchased a one-third stake for $15 million.

By 2011, WeWork attracted tenants such as PepsiCo, whose employees provided mentorship to smaller member startups, establishing WeWork’s role as a startup incubator. By 2013, the company hosted approximately 350 startups, including Fitocracy and HackHands.

By 2014, WeWork had become New York’s fastest-growing office space lessee and was poised to lead growth nationwide. Its investors comprised J.P. Morgan Chase, T. Rowe Price, Wellington Management, Goldman Sachs, Harvard University, Benchmark Capital, and Mortimer Zuckerman.

In February 2015, WeWork earned a spot on Fast Company’s list of the 50 Most Innovative Companies. On June 1 of that year, Artie Minson—previously CFO at Time Warner Cable—joined as president and COO. August 2015 marked WeWork’s first acquisition with CASE, a firm specializing in real estate and construction technology; however, rapid integration reportedly affected CASE’s corporate culture.

2016

In March 2016, WeWork raised $430 million from Legend Holdings and Hony Capital, valuing the firm at $16 billion. By October of that year, total private capital raised reached $1.7 billion. In June 2016, the company implemented a workforce reduction of 7% alongside a temporary hiring freeze. In July, WeWork terminated and pursued legal action against an employee who leaked information suggesting the company would fail to meet financial projections.

The company expanded internationally by unveiling a fourth location in Central Square, Cambridge with 550 desks; this complemented existing offices in Boston's Leather District and Fort Point neighborhoods. Plans were also announced for a new site in Lincoln Square, Bellevue, Washington.

In 2016, WeWork introduced WeLive—a co-living concept—with locations in New York City and Crystal City, Virginia. A third planned WeLive community for Seattle was canceled in 2019. The WeLive initiative was officially discontinued in July 2021.

2017

In April 2017, WeWork introduced an online platform providing services and software tailored for its members. The following month, it unveiled a premium health club at its Broad Street location in Manhattan, equipped with workout machines, a boxing ring, a spa, and a yoga studio offering fitness sessions. By June, WeWork India, under the leadership of then 25-year-old Karan Virwani, collaborated with Embassy Group to debut its initial Bangalore facility, WeWork Galaxy, designed to accommodate 2,200 members.

During July 2017, WeWork secured $760 million through a Series G funding round that valued the company at $20 billion and revealed plans to expand into China, backed by $500 million investments from SoftBank and Hony Capital. In August, SoftBank’s Vision Fund contributed $4.4 billion at a comparable valuation. The company entered the Southeast Asian market in September by acquiring Singapore’s SpaceMob and earmarked $500 million for regional growth.

October 2017 marked WeWork’s agreement to purchase the Lord & Taylor Building on Fifth Avenue from Hudson's Bay Company for $850 million, with renovation plans exceeding $450 million. This deal included transforming floors within HBC department stores located in Germany, New York, Toronto, and Vancouver into shared office spaces. The acquisition finalized in February 2019; subsequently, Amazon acquired the building for $1.15 billion in March 2020.

Also in October, WeWork acquired Flatiron School, a coding education provider (which it divested in June 2020). In November, the company invested in The Wing—a women-centric coworking space (stake sold in January 2020)—and purchased Meetup for about $156 million (later sold at a loss in 2020). Additionally, WeWork took an interest in Wavegarden, a company specializing in artificial wave technology.

In November 2017, WeWork announced the launch of WeGrow, an entrepreneurial-focused private school serving children aged 3 through fourth grade. Its inaugural permanent site was located within WeWork’s New York headquarters. Rebekah Neumann stepped down as CEO of WeGrow in September 2019; the school ceased operations at the conclusion of that academic year.

By December 2017, WeWork had opened its first venue in Singapore.

2018

In January 2018, WeWork formed a partnership with 2U to grant online university students access to its coworking environments. By December of that year, it inaugurated its first campus facility at the University of Maryland, signaling an expansion into educational markets. In March, the company raised over $400 million alongside Rhône Group to establish a property acquisition fund and purchased Conductor, an enterprise software company; however, Conductor was resold to its original executives in 2019. April saw WeWork acquire Naked Hub for $400 million to bolster its footprint within China.

In May 2018, WeWork acquired MissionU for $4 million in stock; this startup was soon discontinued as its leadership integrated into WeWork’s educational projects. July brought a global prohibition on reimbursing meat expenses due to environmental concerns and a $500 million capital raise aimed at expanding its Chinese operations, valuing that subsidiary at $5 billion. In August, the purchase of Designation enhanced educational services through Flatiron School. September featured the acquisition of Teem—a workplace management software firm—for $100 million; this asset was later divested in 2020.

November witnessed SoftBank obtaining warrants to acquire up to $3 billion worth of WeWork shares at a valuation of $42 billion—marking a pivotal investment round. Additionally, the company procured a Gulfstream G650 business jet exceeding $60 million in cost—reflecting CEO Adam Neumann’s extravagant spending approach. In September 2018, WeWork resolved litigation by eliminating broad non-compete clauses for employees. Despite rapid expansion and multiple acquisitions throughout the year, the company reported losses surpassing $2 billion.

2019

In January 2019, SoftBank injected an extra $2 billion into WeWork, valuing the company at $47 billion and raising SoftBank’s total investment beyond $10 billion. However, plans for a more substantial $16 billion funding round were curtailed due to market instability and resistance from investors.

April 2019 saw WeWork purchase Managed by Q, a platform specializing in office services, though the company divested it at a loss by March 2020. On April 29, WeWork submitted a draft registration statement for its intended initial public offering (IPO). By July, founder Adam Neumann had sold $700 million worth of his shares.

On August 14, 2019, WeWork filed its Form S-1 for the IPO, disclosing considerable financial losses, lease commitments amounting to $47 billion, and intricate governance challenges related to Neumann. The filing raised doubts about the viability of the business model and its ability to generate profits. The company also rebranded legally as We Company and paid $5.9 million to an entity controlled by Neumann and other founders for brand licensing; Neumann returned these funds in September and transferred trademark ownership back to the company.

On August 27, WeWork acquired Spacious, a startup that subleased unused restaurant space to remote workers; however, Spacious was shuttered four months later. In September, Frances Frei from Harvard Business School joined the board as its first female member.

By mid-September 2019, amid concerns over governance and valuation, WeWork withdrew its IPO registration. The company’s valuation plummeted to approximately $10 billion from the January peak of $47 billion. That month also marked the exit of Wendy Silverstein, co-leader of WeWork’s real estate investment fund ARK. SoftBank advocated for Neumann’s removal as CEO; he stepped down on September 24, relinquishing majority voting power. Artie Minson and Sebastian Gunningham were appointed as co-CEOs. Additionally, the firm listed its $60 million Gulfstream G650 jet for sale following public criticism.

In October 2019, Neumann received nearly $1.7 billion from SoftBank in exchange for resigning from the board and ending his affiliations with the company, including payments related to shares and consulting fees. Despite this, he remained a consultant earning an annual salary of $46 million. During the same month, WeWork canceled plans for a major office project in Pittsburgh’s U.S. Steel Tower.

Also in October, WeWork alerted clients about formaldehyde contamination detected in roughly 1,600 phone booths across its U.S. and Canadian offices and proactively removed an additional 700 units as a precautionary measure.

On November 6, SoftBank recorded a $9.2 billion write-down—approximately 90%—on its $10.3 billion investment in WeWork. Later that month on November 21, the company announced global layoffs affecting 2,400 employees, nearly one-fifth of its workforce.

2020

At the start of 2020, WeWork began discontinuing complimentary beer offerings at North American sites and declared intentions to slow expansion efforts. On February 1, Sandeep Mathrani—formerly with GGP Inc. and Brookfield Property Partners—was appointed CEO effective February 18. Shortly thereafter, WeWork opened its inaugural Middle East location outside Israel in Abu Dhabi’s Hub 71 technology park under the brand WeWork x Hub 71.

The outbreak of COVID-19 led to temporary closures beginning in February 2020. To cut costs, WeWork laid off 250 employees in late March followed by additional reductions in April. In April, SoftBank—the largest shareholder—abandoned plans for a $3 billion tender offer aimed at purchasing shares from other major investors due to regulatory complications and pandemic-related disruptions. This decision triggered lawsuits from both WeWork and former CEO Adam Neumann against SoftBank; these disputes were resolved in February 2021 under confidential terms.

Co-founder Miguel McKelvey exited the company in June 2020. In September, WeWork sold a controlling interest in its China operations for $200 million as part of ongoing efforts to reduce expenses. Throughout the year, the firm closed 66 locations and renegotiated leases at over 150 others to improve financial stability amid declining revenues and membership numbers.

2021

In April 2021, landlord Walter & Samuels filed a $37 million lawsuit against WeWork, accusing the company of contract violations after it shuttered several locations and failed to make rent payments. Although WeWork eventually cleared its outstanding debts, the landlord later encountered foreclosure proceedings due to defaulting on its mortgage. Additionally, in May 2021, Oxford Properties Group initiated legal action against WeWork over $1.8 million in unpaid rent.

August 2021 saw WeWork selected as one of five co-working providers by the General Services Administration to supply workspace solutions to the U.S. federal government, marking an expansion into public sector clientele.

In October 2021, WeWork became a publicly traded company through a $9 billion merger with BowX Acquisition Corp., a special-purpose acquisition company (SPAC), resulting in its listing on the New York Stock Exchange. CEO Sandeep Mathrani continued leading the company, while BowX’s Vivek Ranadivé and Insight Partners’ Deven Parekh joined the board, bolstering the company’s strategic governance.

That same month, WeWork announced a $150 million strategic investment and partnership with Cushman & Wakefield, aimed at strengthening its corporate framework and broadening its global footprint through collaboration with this prominent real estate services firm.

2022

In January 2022, WeWork expanded internationally by acquiring Common Desk, a Dallas-based co-working operator. Amid international sanctions related to Russia’s invasion of Ukraine, WeWork ceased operations in its Russian offices by March 2022. Later in the year, the company revealed plans to develop a software platform called WeWork Workplace in partnership with Yardi Systems, designed to enhance its service offerings.

Andre Fernandez was appointed Chief Financial Officer in May 2022, succeeding Benjamin Dunham after his 18-month tenure.

2023

By May 2023, confronted with financial difficulties, WeWork restructured its debt agreements to extend maturities and accepted interest rates reaching up to 15%. Midyear figures showed the company managing over 700 locations across 39 countries; however, more than 80% of its revenue—exceeding $2.7 billion annually—was dedicated to covering rent and interest obligations.

As Chapter 11 bankruptcy became imminent in August 2023, WeWork enlisted Alvarez and Marsal for restructuring guidance and secured additional funding from investors such as BlackRock, King Street Capital Management, and Brigade Capital.

In November 2023, WeWork filed for bankruptcy protection in the U.S. District Court for New Jersey, disclosing liabilities estimated between $10 billion and $50 billion. This filing excluded operations outside the United States and Canada, including international branches and franchisees. Prior to this bankruptcy filing, SoftBank made a $1.5 billion payment to Goldman Sachs and other creditors under loan guarantees, underscoring significant financial pressure on principal stakeholders.

2024

On May 30, 2024, following creditor approval of a restructuring plan, WeWork emerged from bankruptcy. Adam Neumann’s $500 million bid was unsuccessful; instead, real estate technology firm and creditor Yardi Systems invested $337 million for a controlling 60% stake and appointed Anant Yardi to the board. Hedge funds contributed an additional $113 million for a 20% ownership share. In June, John Santora—formerly with Cushman & Wakefield—was named CEO. The restructuring process eliminated approximately $4 billion in debt, terminated leases at around 160 of the company's 450 locations, and amended more than 170 leases.

Also in June 2024, WeWork exited the Indian market by divesting its stake in WeWork India to Embassy Group.

In December 2024, WeWork signed a lease for 304,000 square feet at 330 W. 34th Street in Manhattan; this space was fully leased to Amazon.com and represented one of the largest office leases in Manhattan that year.

By the fourth quarter of 2024, WeWork reached break-even EBITDA for the first time in its history; however, it remained unprofitable overall.

2025

During the first quarter of 2025, EBITDA rebounded into positive figures; however, WeWork continued to experience negative cash flow as a result of ongoing renovations across its locations.

Employee discrimination allegations

In October 2018, Ruby Anaya, the former director of culture, initiated a sexual harassment lawsuit accusing male staff members of inappropriate behavior and condemning the company's pervasive "frat-boy culture," which included allegations involving co-founder Adam Neumann. In response to these claims, WeWork discontinued its unlimited beer policy at the New York office.

By June 2019, Lisa Bridges, previously in charge of compensation, filed a lawsuit citing gender-based pay discrimination, especially concerning stock option allocations, and alleged retaliation after raising these issues. That same month, Richard Markel, a former executive, brought forth an age discrimination lawsuit but chose to withdraw it in August 2019.

In October 2019, Medina Bardhi, who served as Neumann’s chief of staff, sued WeWork over disparities in gender pay, executive marijuana use, and discrimination related to pregnancy. Then in February 2020, Ayesha Whyte, the former director of employee relations, filed a lawsuit alleging both gender and racial discrimination along with broken employment promises and biased promotion practices; this case proceeded to arbitration by June 2020.

On July 8, 2020, Diane Allen, ex-stock plan administrator, and Christopher Clermont, former head of diversity and inclusion, each submitted separate complaints concerning racial discrimination. Allen additionally claimed gender discrimination and insufficient handling of sexual harassment reports. Her case was directed to arbitration in accordance with her employment contract.

Prominent locations

Key WeWork sites consist of:

Film and television

In March 2022, the streaming service Apple TV+ launched WeCrashed, an eight-episode dramatized series chronicling WeWork’s ascent and decline with Jared Leto portraying Adam Neumann and Anne Hathaway as Rebekah Neumann. Earlier in March 2021, the documentary WeWork: Or the Making and Breaking of a $47 Billion Unicorn premiered on Hulu, exploring the company’s volatile valuation history.

Published works

Billion Dollar Loser: The Epic Rise and Fall of WeWork authored by Reeves Wiedeman (2020)
The Cult of We: WeWork and the Great Start-Up Delusion by Eliot Brown and Maureen Farrell (2021)

External links