I was under the impression it wasn't even a real estate company since it only rented it's properties and then sublet them.
It didn't even buy properties.
Doesn't have to be necessarily a bad thing if you ask me.
Re:WeWork lays off 2,400 employees
by arcticbull on Thursday November 21, 2019 @04:38PM
(#21599955)
Oh no, I'm actually glad.
There's a case to be made that the benefit of a recession is that it kills off these types of wildly unsustainable businesses as they're forced to prove their model. It's been over a decade since the last one. This allows us to remove some of the froth from the market without necessarily going through the same level of hardship en route.
Re:WeWork lays off 2,400 employees
by Sohcahtoa82 on Thursday November 21, 2019 @05:19PM
(#21600355)
> selling $10 bills for $8.
The classic "We lose money on every sale, but make it up in volume" approach.
Re:WeWork lays off 2,400 employees
by arcticbull on Thursday November 21, 2019 @06:15PM
(#21600809)
A neat spin on it actually! "We lose money on every sale and we have no idea how we'll ever stop, but let's do a lot of it anyways."
Successful at building a large, real business selling $10 bills for $8. It's a dreadful business, they lose money hand over fist with no path to stopping the bleeding.
For a while now, any company who could claim to be a "tech" company like WeWork (an objectively real estate company) did was able to raise on terms that are only suitable for zero-marginal-cost businesses. That is unlikely to continue.