Coworking space company WeWork files for bankruptcy
Listen to the story (British accent)
WeWork, the global company that provides shared office space, has filed for bankruptcy. A few years ago, the company was one of the most valuable startups in the world.
Many people expected WeWork to announce bankruptcy. Last month the company said it could not pay back its debt. Business really struggled during the COVID-19 pandemic because many people worked from home instead of going to an office.
The company used to be worth $47 billion. On Monday, it was only worth $45 million before it filed for bankruptcy.
WeWork says that most locations will stay open as the company tries to reorganize. CEO David Tolley says the company will continue to improve and prepare for the future.
The company’s problems started in 2019 when it tried to go public. There were also problems with the CEO at that time, Adam Neumann. That year, investors told him to leave the company, but he still received a large bonus.
In 2021, WeWork finally went public, but the problems did not end. The pandemic changed how people do business and there was more competition from other coworking space companies.
WeWork also called itself a tech company. However, the company’s main business was real estate, not technology.
In 2023, WeWork share prices have decreased about 98%. The company tried changing CEOs, but nothing has worked. It’s not clear if WeWork can stay in business much longer.
Vocabulary29 words
- Global
- related to the whole world; everywhere in the world
- Provide
- to give or supply something that is needed or requested
- Share
- to have or use something at the same time as someone else; to divide food, money, goods, etc. and give some of it to someone else
- File for bankruptcy
- To officially say that a company cannot pay its debts; to ask a court to help you pay off your debts
- Valuable
- worth a lot of money; very important;
- Startup
- a new business; a recently started business
- Expect
- to think something will happen; forecast; predict; suppose
- Announce
- share information openly; to tell the public; to make a statement; to report
- Bankruptcy
- A legal process when a person or company cannot pay their debts
- Debt
- Money that you owe to someone; money that you have to pay back
- Struggle
- to fight; to try very hard to do a difficult thing; strain
- Pandemic
- when a disease or sickness goes all over the country or world
- Instead of
- rather than; in place of; “not that, but something else”; substitute; alternative
- Worth
- the value that something has, usually in terms of money
- Billion
- 1,000,000,000 = one-billion
- Million
- 1,000,000 - one-million
- Location
- store; shop; venue for business
- Reorganize
- To change and arrange things differently; to change the way something is structured
- CEO (Chief Executive officer)
- the top person in a large company; president; boss
- Go public
- When a private company starts selling shares/stock to the public on the stock exchange; to stop being a private company
- Investor
- A person who puts money into a company or property and hopes to get a profit
- Bonus
- extra money paid as a reward
- Competition
- challenger; opponent; rival; enemy; opposition; another business selling the same product/service
- Coworking space
- A place where people share office facilities and work together; An office space that is shared by multiple people or companies
- Tech = technology
- Real estate
- Property like houses, land, or buildings
- Share
- A unit of ownership in a company; one of the equal parts that the ownership of a company is divided into, and that can be bought by members of the public
- Decrease
- to go down; to become less; become smaller
- Stay in business
- Continue to operate as a company
Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
WeWork, the _____ company that provides shared office space, has filed _____ bankruptcy. A few years ago, the _____ was one of the most valuable startups in the _____.
Many people _____ WeWork to announce bankruptcy. Last month the company said it _____ not pay back its debt. Business really struggled _____ the COVID-19 pandemic because many people worked from _____ instead of going to an office.
The company _____ to be worth $47 billion. On Monday, it was only _____ $45 million before it filed for _____.
WeWork says that _____ locations will stay open as the company tries to _____. CEO David Tolley says the company will continue to _____ and prepare for the future.
The company’s _____ started in 2019 when it tried to go public. There _____ also problems with the CEO at that time, Adam Neumann. That _____, investors told him to leave the company, but he still _____ a large bonus.
In 2021, WeWork _____ went public, but the problems did not end. The pandemic _____ how people do business and there was more _____ from other coworking space companies.
WeWork also _____ itself a tech company. However, the company’s main business was _____, not technology.
In 2023, WeWork share _____ have decreased about 98%. The company tried changing CEOs, but _____ has worked. It’s not clear if WeWork can stay in business much _____.
Discussion questions
- What are the challenges facing the coworking space industry?
- Have you ever worked in a shared office space or coworking environment? What was your experience like?
- What do you think WeWork can do to improve its business and stay in business in the future?
- Do you believe WeWork should have called itself a tech company even though its main business was in real estate? Why or why not?
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