Everything you need to know about WeWork in 2024

WeWork was once one of the real estate industry’s biggest names. But it’s had a huge fall from grace since a failed initial public offering (IPO) in 2019. From late 2023 and into 2024, a series of WeWork locations in the UK were confirmed as closing or due to close, with notice given to tenants.

Reputational controversies have coincided with a dramatic decline in WeWork’s value. In August 2023, the company admitted to “substantial doubts” over its ability to stay afloat, causing shares to drop significantly.

Appetite for coworking spaces is at an all-time high, as the real estate sector caters to big post-pandemic priorities such as flexible office space and shorter leases. But WeWork’s meteoric rise, followed by a humiliating loss of face, has tarnished the brand, leaving many entrepreneurs concerned about the security of its business model.

The below guide will take you through the true state of WeWork in 2024, as well as help you to understand the alternative workspaces and options available, so you can decide on a coworking space that is truly the best for your small business – rather than the just biggest name you’ve heard of.

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Regus Business Lounge	Icon Offices	Wimbletech CIC	Clockwise	Creative Works
Location(s): 97	Location(s): 3	Location(s): 7	Location(s): 1	Location(s): 1
Membership cost: £115 per month	Membership cost: £60 per month	Membership cost: From £65 + VAT per month	Membership cost: £130 per month	Membership cost: £96 + VAT per month
Best for Prime locations	Best for Business support	Best for Networking	Best for Aesthetic	Best for Creative teams

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What is the state of WeWork in 2024?

Founded by Adam Neumann and Miguel McKelvey in 2010, WeWork’s “Do What You Love” ethos appeared to be ushering in a new era of office working focused on modern, open common spaces and a sense of community. By 2021, it had established over 800 locations worldwide.

Around 40% of WeWork clients are large or enterprise clients, but 80% of its space is used by small or individual businesses. WeWork’s website currently claims to provide thousands of UK startups with “dynamic environments for creativity, focus, and connection”.

WeWork has fallen short on this ambition – in part, due to the impact of COVID-19, which hit the commercial premises industry hard. Having lost millions as membership fees dried up, WeWork’s property portfolio has since depleted, with the provider announcing it would close 40 locations in late 2022.

Adding to woes has been a series of PR disasters. Over the past couple of years, the media has showcased a much less flattering portrayal of WeWork than the company has self-evangelised. In August, WeWork senior leaders warned they had “substantial doubt about the company’s ability to continue”, causing the company’s stock valuation fell by 24%.

Then, on October 31st, reports came that the company was planning to file for bankruptcy in the US state of New Jersey. It did so one week later, on Monday November 6.

Following the news members were sent an email, seen by Startups, that sought to reassure that their membership agreements would not be impacted by the change. However, as WeWork begins negotiations with landlords, members should stay alert to any changes the company might have planned for UK offices.

Where did WeWork go wrong?

If you’re a small business owner debating whether to sign a contract with WeWork for flexible coworking space, there is important context you should know before making your decision.

Profitability? Never heard of it.

Following a meteoric rise to success, WeWork attempted to go public. Big time. In August 2019, it filed an IPO that was valued at a huge $47 billion (around £34.5 billion).

After the filing, concerns were raised about just how accurate that valuation was. The company didn’t seem to be making much profit. It rented extremely high-cost properties across the globe, and yet was subletting them out for a comparatively low cost.

Quickly, the launch was delayed, and the valuation steadily dropped. In April 2023, WeWork’s global shares were trading at £0.38 and a market cap of $345.7 million (around £227m). That means the company has lost some £34.2 billion in value over four years — a rapid demise that hasn’t done much to raise investor confidence.

WeWork in a toxic environment

Also in 2019, it emerged that WeWork co-founder Adam Neumann had instilled a toxic culture at the company during his tenure. Multiple lawsuits for alleged race discrimination and sexual harrassment were filed against the company, the latter of which claimed to have been enabled by what court documents described as “an entitled frat-boy culture that permeates from the top down”.

Such high-profile criticism shed new light on Neumann, with further allegations of eccentric behaviour and drug use being referenced. SoftBank, WeWork’s main investor, paid Neumann £1.24 billion to step down and sever all ties with the firm. He did so in October 2019.

Questions about accountability

Alongside deceiving shareholders and risking staff safety, WeWork also hasn’t always been fair to its members. The brand was criticised for charging individual offices full rent in the pandemic. Because SMEs could not afford to pay for a building they were not actually using, many were sent into debt.

Long-term leases also dropped, as a growing number of companies moved towards a hybrid working model, and thousands of tenants halted their payments.

WeWork is by no means in its death throes, despite this onslaught of setbacks and bad press. It is still a coworking giant, with half a million users across the world, so it’s not accurate to refer to a ‘demise’ just yet. Membership also grew by 17% in 2023, despite the controversies.

However, it’s unclear just how much longer WeWork can continue from a position of security, in light of its spiralling debt. Last month, Reuters reported the company had struck deals to extend the due dates of notes in an attempt to strengthen cash flow.

How much does WeWork cost?

For a WeWork desk in London, prices start at around £285 per month. Pricing for a private office shoots upwards from here to £450 per month.

These costs have been estimated from speaking to current WeWork members. That’s because WeWork fees are opaque compared to rivals like Regus. While they are both global providers, the latter charges a flat rate across three payment tiers. WeWork, in comparison, does not share its prices publicly.

The prices of WeWork’s higher-tiered payment plans are more difficult to estimate as there is greater variation in team sizes. However, for an office suite, tenants should expect to pay around £1,000-£1,500 per month.

Large-scale businesses are the target audience for full-floor offices, which afford the greatest amount of flexibility and even include personalised branding. The Full-Floor Office plan is only purchasable as an annual subscription, and would likely set you back by around £3,000 per month.

Are there any discounts available?

New members can get up to three months free on private offices (for 2-11 people). However, you will need to commit to a minimum membership of 12 months to get this offer.

WeWork All Access

This plan has the greatest amount of flexibility for teams that have freelancers or staff members in multiple locations. For a set amount each month, you’ll be able to visit multiple WeWork locations without being charged anything extra.

Users have access to conference rooms, hot desks and private offices worldwide, as well as shared amenities and communal areas within the buildings. There are has payment tiers: Basic and Plus.

• WeWork All Access Basic offers limited access to up to nine WeWork locations including three coworking spaces in Manchester and four locations in London. This plan does not cover any other UK cities for coworking space.
• WeWork All Access Plus offers global access to every WeWork location – including coworking space in Birmingham. It’s the best choice for those with employees based overseas. 24/7 access is also permitted in some locations.

How much does WeWork All Access cost?

WeWork All Access is a monthly membership plan, so you can sign up quickly and leave just as easily. It can be purchased as either an Individual or Teams option – the latter of which is designed for 10+ members.

At the moment there is a special introductory rate for new members which offers a discount for the first three months. In this initial period:

• WeWork All Access Basic will cost £199 plus VAT, per member, per month. After five months, the amount rises to £220 per member, per month
• WeWork All Access Plus will cost £269 plus VAT, per member, per month. After five months, the amount rises to £359 per member, per month

For context, Regus Business Lounge offers members monthly access to all of its locations across the UK for just £99 per member, per month.

WeWork On Demand

This solution is best-suited to sole traders or hybrid workers, and is built around a pay-as-you-go pricing model.

ONS figures from May 2021 show that, post-pandemic, 85% of home working adults want to use a “hybrid” approach of both home and office working in future. So, if your employees are only looking to work from an office for half of the week, the On Demand plan will save you buckets in comparison to monthly memberships.

Users can download the WeWork On Demand app and book a shared workspace or a meeting room without a monthly subscription. The service applies to over 285 workspaces across 50+ major cities. You can check availability online.

How much does WeWork on Demand cost?

Access to a hot desk starts from £25 a day, while meeting rooms are bookable for £15 per person, per hour. For context, Regus charges £169 per month for ten days in a shared workspace, and £109 per month for five days.

How do WeWork costs compare to competitor costs?

As the UK dances along a cliff edge of a recession and economic recovery, resources are thin and need to be managed smartly. That’s why many business owners choose to invest in a serviced office.

Simultaneously, however, the rising rate of inflation has caused a cost of living crisis that has been difficult for companies to navigate while supporting their employees.

Coworking costs can be very expensive – which is why budget is now one of the biggest considerations for small businesses.

Is WeWork a cheap coworking option?

In short, no. In fact, WeWork is one of the most expensive coworking providers for small businesses – particularly if you’re based outside of London.

Its pricing is also not very transparent compared to rivals like Regus, which has clear payment packages published on its website.

In its failed initial IPO, WeWork reported total rental costs for its 800+ global properties to be £13,196 billion. Perhaps due to these vast running costs, the prices that WeWork charges its tenants are far from competitive.

Here’s a quick breakdown of WeWork’s costs for one month, and how they compare to four typical competitors in the UK coworking market:*

*Prices are based on dedicated desks in a Manchester office. All prices are accurate to May 2023.

After a cheap coworking space? Read our guide to the best cheap coworking spaces in London.

What are the best UK WeWork alternatives for SMEs?

The world is currently in a coworking boom thanks to the advent of flexible working, which has accelerated businesses’ desire for hybrid work environments and less rigid rental contracts.

As a result, there are many smaller coworking companies cropping up in cities across the UK, opening up lots of regional market competition. Whether you’re based in Bristol or Aberdeen, we recommend you research local coworking spaces in your area to find the best option for your small firm.

Luckily, our experts have been monitoring the sector since before WeWork’s conception. Below, we’ve picked out what we think are some of the best coworking providers, nationally.

Conclusion – should you use WeWork?

Despite the company’s famous glass walls, WeWork has been anything but transparent in the past few years, and there are lots of things to consider if you’re debating choosing WeWork as a building operator. With UK branches closing down in 2024, and question marks lingering over the long term viability of the business, it’s understandably a risky prospect for a small business or startup to sign up to a new WeWork contract right now.

Most concerning is the firm’s questionable working culture and misleading business reporting, which has left many wondering just how it has survived the past half decade – and if it will have a long future to come.

As this guide has shown, alternative companies can offer WeWork’s products, services and more, all for a lower cost. Given the current boom in the coworking market, now is a smart time to move away from WeWork. Small businesses should take advantage of new competition in the market to find the best discounts and deals.