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Delta, Six Flags and GM filed and successfully exited chapter 11 in recent memory. I hope at least my local wework (in Brooklyn) doesn't get shut down! More an

Delta, Six Flags and GM filed and successfully exited chapter 11 in recent memory. I hope at least my local wework (in Brooklyn) doesn't get shut down! More and more people are coming in to use hot desks, though the private offices are still half empty.

Mistletoe 3y ago
I think the problem is more that the idea isn't sustainable in any way.
- willsmith72 3y ago
  it's kind of interesting that it's not though, isn't it? intuitively, a shared office space makes sense to me. I find it really useful as a remote employee to get out of the house a couple of days a week, and for my employer it's pretty cheap and is a perk which helps them hire from all over the world, also cheaper than hiring american engineers. Is it just a pricing issue? Hot desks are about 250 USD/month
  - chrischen 3y ago
    People keep saying that but they are just armchair-ing. The whole commercial real estate market is in trouble and it has little to do with how WeWork is run today, which is not the same as the money blowing Adam Neumann days.
  - Mistletoe 3y ago
    https://www.profgalloway.com/wewtf-part-deux/ https://www.profgalloway.com/wewtf-part-deux/ This was in 2019 and I can only assume everything has gotten even harder with free money gone and interest rates at 5%.
    - willsmith72 3y ago
      well i read the whole thing, and it provided 0 facts about the actual economics of a coworking space. It was just an indictment of bad and dodgy leadership.
      - Mistletoe 3y ago
        >We has consistently been so far off on any forecasts in their original pitch deck that it appears numbers are more of a nuisance than reporting metrics. Their forecasted profits: $14 million for 2014, $64 million for 2015, $237 million for 2016, $542 million for 2017, and (wait for it) $1 billion for 2018. >Except in 2018 the firm lost $1.6 billion, which is likely understated. These are the financial facts from the article. Tell us the math of your 2023 WeWork and compare to how much their lease must be, etc. These seem to be the latest numbers: https://www.statista.com/chart/19025/wework-revenue-and-loss/ https://www.statista.com/chart/19025/wework-revenue-and-loss... 3.3B revenue 5.3B expenses That's a big problem.

Mistletoe 3y ago

I think the problem is more that the idea isn't sustainable in any way.

willsmith72 3y ago
it's kind of interesting that it's not though, isn't it? intuitively, a shared office space makes sense to me. I find it really useful as a remote employee to get out of the house a couple of days a week, and for my employer it's pretty cheap and is a perk which helps them hire from all over the world, also cheaper than hiring american engineers. Is it just a pricing issue? Hot desks are about 250 USD/month
- chrischen 3y ago
  People keep saying that but they are just armchair-ing. The whole commercial real estate market is in trouble and it has little to do with how WeWork is run today, which is not the same as the money blowing Adam Neumann days.
- Mistletoe 3y ago
  https://www.profgalloway.com/wewtf-part-deux/ https://www.profgalloway.com/wewtf-part-deux/ This was in 2019 and I can only assume everything has gotten even harder with free money gone and interest rates at 5%.
  - willsmith72 3y ago
    well i read the whole thing, and it provided 0 facts about the actual economics of a coworking space. It was just an indictment of bad and dodgy leadership.
    - Mistletoe 3y ago
      >We has consistently been so far off on any forecasts in their original pitch deck that it appears numbers are more of a nuisance than reporting metrics. Their forecasted profits: $14 million for 2014, $64 million for 2015, $237 million for 2016, $542 million for 2017, and (wait for it) $1 billion for 2018. >Except in 2018 the firm lost $1.6 billion, which is likely understated. These are the financial facts from the article. Tell us the math of your 2023 WeWork and compare to how much their lease must be, etc. These seem to be the latest numbers: https://www.statista.com/chart/19025/wework-revenue-and-loss/ https://www.statista.com/chart/19025/wework-revenue-and-loss... 3.3B revenue 5.3B expenses That's a big problem.