16,000 employees & millions around world
It’s impossible to know exactly how many people were following WeWork’s journey by this point—likely millions—but for its 16,000 employees, it felt like the whole world was watching. It became normal to receive screenshots of embarrassing headlines from friends asking if they were true or have family members questioning why you were still working at WeWork. At one point, a reporter from Business Insider reached out to ask for my perspective on the collapse—I blocked them. After investing so much time and energy into building the company, being caught in this mess was humiliating.
Some stories hit harder than others. One that cut particularly deep was the revelation that WeWork had paid its founder, Adam Neumann, nearly $6 million for the rights to the “We” trademark, which he had privately registered. This came at a time when layoffs were sweeping through the company and financial troubles dominated every discussion. Then there were the more absurd headlines, like the CNBC story claiming Adam wanted to live forever, be king of the world, and become the first trillionaire.
For employees who had worked tirelessly to build something meaningful, being associated with these headlines was devastating. It wasn’t just embarrassing; it crushed morale. The company’s reputation was in free fall, making it almost impossible to attract new talent. Why would anyone want to join a company widely seen as a sinking ship? Hiring delays meant more work for already exhausted teams, who were clocking brutal hours just to keep things afloat.
Critics, meanwhile, tore into WeWork’s $47 billion valuation, pointing out that it defied business fundamentals. The company had massive costs, no profits, and a business model that struggled to generate enough revenue to cover its lease obligations. In fairness, many successful startups disrupt industries by introducing innovative models that take time to prove their economic viability. But it’s management’s responsibility to show that viability exists. Unfortunately, before Marcelo joined as Chairman, WeWork’s leadership had trouble doing that.
One of the harshest and most consistent critics was Professor Scott Galloway, who regularly dissected WeWork’s valuation and mismanagement in his No Mercy/No Malice columns. Headlines like "WeWTF" captured the collective disbelief at how far and fast the company had fallen.
Between September 2019 and May 2020, WeWork’s valuation plummeted from $47 billion to $2.9 billion, making it one of the most infamous business collapses in history. There are several reasons why it captured so much attention. Adam’s loud, rockstar-like persona and rags-to-riches story were irresistible to the media. Miguel’s humble beginnings and personal story added to the intrigue. And then there was WeWork’s eccentric culture: elaborate events like Summer Camp and Summit, and its grandiose mission to “elevate the world’s consciousness.” These elements turned WeWork into a lightning rod for media scrutiny, ensuring its rise and fall would be headline news for years.
Lessons From WeWork’s Media Scrutiny
- Innovation Requires Viability
Disruption isn’t enough—leaders must demonstrate how innovative models can be sustainable and profitable to maintain confidence. - Reputation Is Fragile
Poor decisions, like the $6 million trademark deal, can quickly destroy a company’s reputation, leaving employees demoralized. - Leadership Shapes Perception
High-profile leaders draw attention, but their actions must reflect integrity and accountability to uphold trust. - Trust Fuels Teams
Controversial headlines eroded morale and trust. Transparent communication is essential to keep teams motivated during tough times. - Media Magnifies Missteps
Bold visions draw media attention, but mismanagement amplifies scrutiny. Leaders must balance ambition with strong execution.