WeWork is laying off 2,400 employees globally, but its India business remains safe

wework.co.in
  • WeWork India is run by the Embassy Group as a different entity.
  • An Embassy spokesperson told Business Insider that WeWork India remains immune from the global mishaps.
  • The company also claims to have achieved operational profitability at a portfolio level in two years of operations
The troubled coworking giant WeWork has confirmed that it’s axing 2,400 jobs globally to cut down costs. But its India business and employees remain safe.

WeWork India is run by the Embassy Group as a different entity.

“WeWork India is a strategic long-term play for Embassy group and its performance has exceeded our expectations this year. With over 40% of the coworking market of over 400 players, WeWork in India has 25 locations in business hubs across the country,” an Embassy Group spokesperson told Business Insider.

For the second quarter. Embassy Office Parks posted a net profit of ₹232 crore, with a total income of ₹538 crore.

The group remains bullish on the Indian co-working opportunity. According to a report by consulting firm Knight Frank, as much as 4 million sq. ft of corporate real estate leased for coworking across major cities in the first half of 2019.

“WeWork India, which is wholly owned and funded by Embassy group, is our big bet in this space. Aligned with the group’s corporate real estate portfolio, WeWork India has established its market leadership and operational profitability at a portfolio level in two years of operations,” said Embassy group spokesperson.

The company also hopes to continue working with the new global WeWork co-CEOs – Artie Minson and Sebastian Gunningham.

WeWork global on the other hand, had a stressful year as its financials and governance was questioned as it was going for an IPO. SoftBank, which was the company’s biggest backer, cut its valuation from $47 billion to $8 billion.

WeWork founder Adam Neumann left the company after the debacle. SoftBank invested as much as $1.5 billion in October, Neumann became a Board observer, and retained voting control over his shares.
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