WeWork can undisputedly be named as the tech organization for 2019 that has come across the most prominent financial calamity. WeWork is characteristically an operator of workplace solutions. The brand is now shrinking fast.
The initiating factor in the development has been the scrapping of initial public offering (IPO). This occurred when investors rejected the brand’s $20bn valuation, which many find to be absurd.
The WeWork collapse is a case of misdirection of excess private capital in an unregulated market, misdirected towards an individual’s plans of wealth creation.
It was from the word go that WeWork’s strategy was oriented towards market domination. They wanted to exhaust the competition, and in the meantime, make up for the losses by using investor’s money.
Even while WeWork seemed like a loss-making venture to the discerning eye, it promised a potential for success in future. The investors nevertheless chose to indulge, while WeWork got started with making losses of $219,000 on an hourly basis.
One of the reasons for the same is that WeWork’s offerings were not game changing. They were offering hot desks and work spaces, a few of them for urban freelance.
WeWork’s story may be classified as a case over expansion which has been reckless in nature. The employees of the organization now have to pay the price for the mismanagement of sorts. Around 4,000 of the employees are very likely to be laid off. They have been told to be the one for the team by their chairman.
The story of WeWork tells us that the economic model that has accounted for success of unicorns in the past is volatile. It is not absolutely foolproof.
WeWork is an organization which is largely oriented towards finding solutions for precariat workers. They were the targeted customer cross section demographics because the gig economy is booming. Remote working solutions would come by as exceedingly attractive for them, as WeWork philosophy had come to derive before they got started out with their business plan.
So why did WeWork not find the desired levels of success? Being a satellite employee probably isn’t as amusing as being employed full time. Satellite employee workforce might not have been on a lookout for additional infrastructure for working from home. Lower blepharoplasty works in the finest of ways to ensure a more youthful appearance for one.