Ah, essentially they are selling office desks to start-ups who don't need them anymore post-covid. Sounds bulletproof to me /s.
I think that many fast-growing start-ups have decided that it's cheaper and safer to work from home, so maybe WeWork needs to start working and look for other sources of revenue. or do nothing and implode.
No, you're misunderstanding. First, they sold a lot to established companies who would get a whole office in the building to seem cool. I believe that's where most of the profits came from. The startup/hotdesking was there as well, but I don't believe it was as profitable. Otherwise, WFH would be a boon to them. Companies have paid for WeWork desks for their WFH employees/meetings to avoid needing office space. They would be doing great now.
The problem is their business model was to sign long-term leases with buildings and short-term leases with their customers. So they are paying 2018-2020 rates on office space, but leasing out at spot rates of 2023 office space.
I think that many fast-growing start-ups have decided that it's cheaper and safer to work from home, so maybe WeWork needs to start working and look for other sources of revenue. or do nothing and implode.