In July 2020, The Wing, a women's coworking operator, faced significant challenges due to the coronavirus pandemic, leading to the layoff of 56 employees and the resignation of its co-founder and CEO, Audrey Gelman. In this article, we will discuss the reasons behind these layoffs, their impact on the company, and the potential future consequences for the industry.
The Wing's decision to lay off 56 employees was primarily driven by the economic pressures and shifts in industry demands due to the coronavirus pandemic. As the pandemic forced the company to temporarily shut down its locations and rethink its spaces, it faced financial difficulties and the need for cost-cutting measures. The pandemic has also changed the way people work and use coworking spaces, leading to a need fo
In addition to these external factors, the company underwent internal changes, including the resignation of its co-founder Audrey Gelman as CEO. The Wing has stated that it needs to "tear down the foundations, evolve and rebuild the way forward" in order to survive the pandemic and its effects on the coworking industry. The broader coworking industry has also been significantly impacted by the pandemic, with many companies facing financial difficulties and closures. In response to the layoffs, The Wing offered severance packages to the affected employees and started a relief fund to provide $500 grants to former workers.
Following the layoffs, The Wing is focusing on rethinking its spaces and rebuilding its foundations to adapt to the changing business environment caused by the pandemic. Although specific figures for the expected costs and savings from the layoffs are not provided, it can be inferred that the company aims to reduce costs and adapt to the new market conditions.
The Wing is pausing its programming, app, and memberships, and plans to "tear down the foundations, evolve, and rebuild the way forward." This strategic adjustment suggests that the company is realigning its investments to better suit the current needs of the business and optimize for continued growth.
The Wing's layoffs may have ripple effects on the real estate industry, particularly in the coworking sector. As the company rethinks its spaces and business model in response to the pandemic, other coworking operators may follow suit, leading to potential shifts in demand for commercial real estate.
The industry may see a trend towards more flexible and adaptable spaces, as well as an increased focus on health and safety measures. While it is difficult to predict the exact impact of The Wing's layoffs on the real estate industry, it is clear that the coworking sector is undergoing significant changes in response to the pandemic and its effects on the way people work.
The Wing's layoffs were driven by pandemic-related economic pressures and industry shifts, leading to cost-cutting measures and a need to adapt its business model. These changes may impact the company's future and standing in the coworking sector, potentially influencing the broader market towards more flexible spaces and increased health and safety measures. The Wing's strategic adjustments could serve as a blueprint for future implications and survival tactics in the evolving coworking industry.
