WeWork

Commercial Real Estate

This is the excerpt from the case study that should appear on the case study cards.
Sep 4, 2024

$5M

Cost savings achieved through streamlined operational processes and optimized resource allocation.

15%

Increase in employee engagement scores following the implementation of tailored internal communication strategies.

10%

Reduction in public-facing reputational risks due to effective crisis communication efforts.

Background

WeWork was founded in 2010 with the vision “to create environments where people and companies come together and do their best work.” As of 2023, they operated in more than 700 locations across 39 different countries.

WeWork offers a space-as-service business model, with their main revenue coming from memberships and services. In August 2023, WeWork warned that it had substantial doubt
that it could remain in business and might file for Chapter 11, and they officially filed on November 6th, 2023.

The Issue

WeWork underwent a restructuring process starting in October, with a Chapter 11 filing in early November. The company brought in new leadership, including CEO David Tolley, and worked with advisory groups like Kirkland & Ellis, Alvarez & Marsal, and Hilco for real estate negotiations.

The restructuring involved a comprehensive communication strategy targeting stakeholders such as media, landlords, sales teams, and employees. The primary goal was to convey the strategic downsizing of WeWork’s real estate footprint and to maintain confidence among landlords and members despite the ongoing financial restructuring.

Key Responsibilities

Internal and External Communications

Managed all communications for stakeholders, including media, landlords, and employees.

Real Estate Negotiations

Worked with major brokers and landlords to renegotiate leases and reduce the company’s real estate footprint.

Leadership Transition

Advised new CEO David Tolley and facilitated his public image rebranding.

Proactive Media Strategy

Promoted the benefits of flexible workspaces and co-working spaces to attract enterprise clients.

Employee Engagement

Conducted town halls and regular communications to reassure employees about their job security. Managing restructuring and bankruptcy-related media interactions.

Their commitment to understanding our unique needs and delivering actionable solutions was truly exceptional.

sandeep mathrani
sandeep mathrani

CEO, WeWork

Our role extended to media monitoring, translations, collaboration with the community and marketing teams, and the delivery of a CEO video for members.

C Street continues to be a partner, continuing to be a player in the process managing key milestones during the Chapter 11 cases in addition to supporting business as usual communications – partnering with the communications team to identify proactive opportunities.

Key Players

Luke
Jen
Katie
Lisa
Matthew

Partners

Alvarez & Marsal
Centerview Partners
Kirkland & Ellis

The Result

Media and Stakeholder Confidence

Successfully maintained positive media coverage and stakeholder confidence throughout the restructuring.

Lease Renegotiations

Completed lease renegotiations to create a leaner, more sustainable real estate portfolio.

Continued Operations

WeWork continued to attract new members and retain existing ones, despite the financial instability, by effectively communicating the strategic benefits of their restructuring.

Leadership Stability

Successfully transitioned to new leadership with minimal negative media attention.

Press Coverage

Explore our areas of expertise

C Street Advisory Group offers strategic services across a variety of practice areas to help companies navigate complex challenges and drive success.
Discover how our expertise can support your specific needs.

Discover Our Expertise