Wework Emerges from Bankruptcy, Monday.com’s new office, and the firm using office attendance in performance reviews
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Hello and welcome back to another edition of Working out Workspace!
I write about workspace and workplace culture. This week, I’m discussing:
WeWork Emerges From Bankruptcy
WeWork has faced some pretty turbulent times throughout the last few years. On August 14, 2019, WeWork filed its SEC form 1, with an unofficial valuation of $47 billion, making it potentially the second largest IPO of 2019, after Uber.
However, the initial IPO didn't come without some criticism. As David Trainer wrote for Forbes, "WeWork might not be the largest IPO of 2019, but it is easily the most ridiculous, and the most dangerous. At least, Uber and other recent big-money IPOs offered some legitimate innovation in their business models even if their valuations were far too high".
In September 2019, WeWork withdrew its initial public offering and its share price has been decreasing ever since.
After the failed IPO, the COVID-19 pandemic which reduced demand for office space, and a downturn in tech evaluations, WeWork filed for Chapter 11 bankruptcy protection in November 2019. At the time, WeWork had total liabilities $18.65 billion against assets of $15.06 billion.
After a restructuring that WeWork announced is part of a wider strategy to 'improve liquidity and strengthen our balance sheet' - it was announced on the 12th of June 2024 that WeWork has successfully emerged from bankruptcy as a private company, with new CEO John Santora, taking the helm.
As part of this restructuring, WeWork has reduced its overall real estate portfolio, closing 170 unprofitable locations and exiting two countries entirely.
In London there were 5 WeWork closures:
In total, the reduction of WeWork's portfolio reduced their annual rent expenses by $800 million, and over $400 million of additional equity capital was secured.
How Employee Feedback Empowers Office Design at Monday.com
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If you have followed this newsletter for a while, you know I often discuss how office spaces shape culture. But how do you design an office that aligns with your team's needs, when those needs constantly evolve?
Every company requires a different approach - some need open spaces for collaboration, and others need quiet areas for focused work. A recent WorkLife case study on monday.com 's new four-floor office in Union Square, New York, offers some great insights into how Keren Reznik , Head of Workplace Projects at Monday, utilised employee feedback in their office design process, to create a space that works for their team. How did they do it?
What resonated with me was Monday's intentional approach to office design. Instead of simply fulfilling initial employee requests and completing the project all at once, they opened the first two floors in September 2022, then used feedback to inform the design of the next two floors, which opened in April 2023. As Keren notes in their discussion with WorkLife:
"The office is constantly changing, whether that is by adding a different kind of room or just changing up the lunch menu.?We are in growth all the time, continuously an evolving project"
I love this approach to office design because, let's face it, how we think they'll use a space often tends to differ from how we do.
Monday's approach allowed them to see how employees were actually using the space, ensuring the second two floors supported this.
The office has many amazing features - including a zen room, a massage room, a library, a “backyard” area with beach chairs, a Tiki bar, a Lego display area, a wine bar, an arcade and an outdoor arcade. But not all ideas stand the test of time:
“We had this idea from one of the surveys we did to have a self-empowerment corner, where employees can simulate how they talk with a crowd. It ended up not working and we realised people were not using it"
It's rare to see a company treat their office design with such intentionality. Kudos to Monday!
Considering your own office redesign? We often work with clients on office designs and fit-outs. Let us know if you are looking to do one!
Office Attendance Used in Performance Reviews at Top UK Law Firm
In May 2024, Addleshaw Goddard mandated that all lawyers attend the office three days a week, with partners facing negative performance reviews for non-compliance, according to The Times.
As noted in an article by Personnel Today, the firm's managing partner, Andrew Johnston, said the policy was implemented to ensure it was “delivering excellent client service right across our business”, noting that although there were benefits from the flexibility that remote working provides, "nothing can replace the benefits to client service and the firm's culture that come from being physically present together. Spending time together can give us a real competitive advantage”.
It is common to see return to the office mandates put in place and it looks as if many companies are increasing the number of days they require their staff in the office. However it is unusual to have performance reviews linked to attendance and consequently compensation. Might it be a trend we see increasing? I'm not sure but the jury is out.
Thanks for reading! ?
As always, if any of these topics interest you, or if you'd like to find out more, don't hesitate to reach out at [email protected] or DM me via LinkedIn - my inbox is always open for workspace chat! ??