The New York-based firm, WeWork is facing tough times after postponement its IPO plans. Low valuation, stepping down of CEO, Adam Neumann, and lack of faith of investors are problems hovering over the company now. Amidst these tensions, the Indian subsidiary of The We Company, WeWork India remains unaffected and continues to thrive in the Indian space.
WeWork India, which is a joint venture (JV) between The We Company and Embassy Group, is planning to surge its foothold in the country. The co-working firm is reportedly entering in the metropolitan city, Noida.
The company has taken on lease more than 3 lakh sq. feet office space to initiate co-working centers offering approximately 3,900 seats, stated Entracker.
Expanding Its Reach
The Indian arm, WeWork India has recently taken area on lease from three firms viz. Logix, Berger Group and Advant India for introducing 3 new facilities, stated by the media report.
The office-sharing company has been receiving high demand from consultants, freelancers, and corporates, according to the company’s statement.
Besides foraying in Noida, the co-working firm is deciding to set up its bureaus in other cities as well-- two offices in Hyderabad and three offices in Bengaluru stated Inc42.
The business expansion is taking place when dissension is going around WeWork’s IPO plans. Ever since the company has proclaimed its IPO plans, it has been facing massive losses and criticism from investors, who impeached its profitability. After finding the dysfunctional status of WeWork, Founder and Ceo of WeWork, Adam Neumann was forced to step down and following which, SoftBank recommended the company to postpone IPO plans.
In June this year, Chairman of Embassy Group, Jitu Virmani had discussions with WeWork to sell a significant portion of stakes at more than $2.4 billion valuations. However, the transaction did not take place as the then-valuation of the company was higher, stated Entracker.
New York-based firm, WeWork had first entered in India by releasing its arm, WeWork Galaxy. The Indian arm comprises a 2200 co-working niche in Bengaluru in 2017, stated the cited media report.
At present, the co-working firm has 26 bureaus in the country with nearly 46,000 seating volume. It has already entered in major cities and is operating 9 centers in Bengaluru, 1 center in Pune, 10 centers in Mumbai and 6 centers in Gurugram.
Laying Off Employees
To keep WeWork a financially sound firm, the company is reportedly planning to lay off almost 500 tech employees. It is anticipated that the company will dismiss 350 employees in its corporate segment, stated The Information.
Primary job cuts will happen in three fields--software engineering, data science, and product management. An additional 150 employees will be sacked as the firm plans to sell off its various assets, encompassing, SpaceIQ, Conductor, Meetup, Q, and Teem.