Wework hopeful of revival amid growth in demand for flexible workspaces

Embattled office company Wework is hopeful of a revival after reporting a jump in demand for flexible workspaces in London.

The New York-based business, which collapsed in November 2023 before emerging from bankruptcy last year, said its on-demand bookings – a pay-as-you-go membership option – rose by 30 per cent in London compared to the same period last year.

The company operates flexible workspaces across 28 sites in the capital, well down from the roughly 50 it had prior to bankruptcy.

“Even professionals with unparalleled flexibility are choosing to work from the office for an environment and experience that outweighs the comfort and convenience of working from home,” Europe and Asia president at Wework, Luke Armstrong, told City AM.

Wework said that locations along the Elizabeth line have proved particularly popular, with a 12 per cent increase in booking near to the tube line year on year.

Wework and other flexible working sites have benefited from a huge push by employers to get workers back to the office.

The firm’s billionaire founder, Adam Neumann, who was forced to resign from the company amid investor concerns over corporate governance, has even gone on to set up a new rival to Wework, which he has called Workflow.

Firms increasingly started to order employees back to the office last year, with a spate of City businesses from JP Morgan to WPP expressing support for the in-person work model.

But they’ve come up against workers who are unwilling to return to pre-pandemic working patterns, with many now reliant on home-working for childcare and their finances.

The result has been a shift to flexible working patterns, with Thursday the most popular day for Londoners to go into the office and many aligning their office days with social activities and team meetings.

This change is one of the reasons offices in London are getting nicer: employers are trying to tempt workers back with perks like free lunch and smart design.

“Flexible working has evolved from an unstructured model into a more deliberate in-office hybrid strategy for global companies,” Armstrong said.

“As hybrid work formalises, companies are increasingly recognising that quality and experience have emerged as key factors in drawing employees into the office, ensuring they get the full benefit of in-person collaboration.”