WeWork-competitor Knotel laid off a third of its NYC-focused staff last week. This comes after CEO Amol Sarva was out in full force distinguishing his company from WeWork by arguing that hyper-growth, unlimited money, and corporate governance issues led to the IPO debacle. He told CNBC that Knotel should be immune from similar criticism as its “five times more capital efficient” than its rival.
- Under the hood: WeWork 2.0… Crain’s recently revealed that Knotel has a 33 percent vacancy rate in its nearly 2.4 million-square-foot NYC portfolio. The company’s leasing activity dropped by nearly 80 percent between the third and fourth quarter of 2019.
- From a former employee: “There was a lot of shade thrown on other businesses… But they were running the exact same business model.”
- SoftBank’s explanation of WeWork struggles: Partner Deep Nishar said the Vision Fund is “helping the company because we believe the idea at its core is very, very good. We will help solve WeWork’s problems with corporate governance with the next set of management, Bloomberg reported.