October 3rd
At 10 a.m. on October 3rd, 2019, I wrapped up a meeting with my manager just as the All-Company presentation was about to begin. Together, we walked to the main floor, where every person stood by their desks or leaned against the walkways, their eyes glued to the screen at the far end of the room.
On stage stood Miguel, one of WeWork's co-founders and the soul of the company. He clutched the microphone close to his chest, visibly exhausted. Miguel began recounting WeWork’s story—how it grew from a scrappy startup to a global presence with over 10,000 employees and hundreds of locations. It was a story he had told many times before: the nights spent working tirelessly to open the first location, the miraculous pace of growth, the spread across the globe.
But this time, his tone was different. The wide-eyed curiosity and gratitude that usually accompanied his words were missing. His voice felt heavy, his message hollow.
The atmosphere in the room was tense, a sharp contrast to the carefree, confident energy that had always defined our All-Company meetings. Confusion, anxiety, and dread hung thick in the air. Somewhere in the middle of Miguel’s speech, the gravity of what lay ahead hit me. The restructurings, the headlines, the layoffs—on a scale none of us could yet comprehend. It wasn’t just a possibility; it was inevitable.
As this realization sank in, I scanned the room. Faces were serious, worry etched into every expression. A few people had already started to cry. I thought about all we had been through together—the relentless pace, the fire drills, the org changes, the workshops, and the battles fought side by side to build something great. Now, uncertainty loomed over us, filling the air with a weight that seemed to press down on everyone.
Dirty Laundry
The pace of WeWork was unmatched. Decisions were made at such volume and velocity that even major business moves were impossible to track. It wasn’t for lack of curiosity—it was just the nature of the environment. Rumors about acquisitions, new ventures, or unexpected pivots often swirled, but for most of us, they were little more than background noise.
Instead, our focus was on what mattered: making the core product—workspace—better, and scaling the operations to support it. We were building something massive, something that felt essential. Every effort went into improving the experience for our members, ensuring they could thrive, and outpacing our competitors.
But over time, the noise grew louder. Whispers about financial troubles and a strained relationship with SoftBank began to spread through the company. It was clear that things had veered off course, though the full extent of the challenges wasn’t apparent to the majority.
The dominant story among most employees was that going public was our last shot. If SoftBank wasn’t willing to continue pouring money into the company, listing as a public company seemed like the only way to secure the capital needed to keep the business afloat. The pressure was mounting, and while we kept working to improve our product, the cracks in the foundation were becoming harder to ignore.
Going public, attempt no. 1
On August 14th, 2019—exactly two years after I joined the company—Adam, Rebecca, and Miguel announced via email that The We Company had publicly filed its S-1 registration statement, complete with financials. What was intended to be a celebratory moment instead ignited a firestorm of criticism. The media and investors scrutinized every detail, tearing apart WeWork’s performance and governance structure.
The fallout was swift. Adam was ousted as CEO, and by October 3rd, we found ourselves in an All-Company meeting, bracing for an explanation of what would happen next.
An Active Chairman
The next speaker on October 3rd was Marcelo Claure, newly appointed as WeWork's Chairman by SoftBank’s founder, Masayoshi Son. Marcelo, a self-made Bolivian-American, was unlike anyone we were accustomed to seeing on stage at WeWork. Calm, direct, and intentional, he stood tall and confident, commanding the room with a presence that felt steadying in the chaos. What followed was one of the most powerful demonstrations of corporate leadership I have ever witnessed. In the heat of the moment, Marcelo’s composure and delivery were nothing short of extraordinary.
If you could track down a transcript of his speech, it would read like a masterclass in high-stakes damage control. Marcelo began with a lighthearted joke about Miguel’s height, which instantly defused the tension in the room. From there, he acknowledged the challenging reality we were facing, building on the story Miguel had already shared.
Marcelo explained that SoftBank had made an incremental $4 billion investment in WeWork, bringing their total investment to over $18 billion. This, he assured us, would provide the capital needed to stabilize operations and undertake the necessary steps to "rightsize" the company, achieve profitability, and build the next chapter of WeWork’s story. His message was simple, direct, and grounded.
While he admitted there was still much to figure out and tough decisions ahead, Marcelo shifted our focus back to the fundamentals: optimizing WeWork’s core product and business capabilities. He pointed out the strong tailwinds still working in our favor—the rise of the gig economy, the growing number of entrepreneurs, and the increasing demand for flexible workspaces from both startups and enterprises. Large companies, he emphasized, were eager to boost employee engagement and culture, areas where WeWork’s Design teams excelled.
Marcelo framed the moment as something every great company goes through—a near-death experience that tests its resilience. He committed to working closely with leadership to develop a turnaround plan, one with clear operational and financial milestones that would hold everyone accountable.
In just a short time, Marcelo transformed the narrative from one of disaster to one of opportunity. His words instilled a sense of calm and optimism that had been absent for weeks. While we understood the road ahead would be anything but easy, it was refreshing to hear that a turnaround was not only possible but already in motion.
It felt like we were all in it together, with Marcelo standing shoulder to shoulder with us, risking his own reputation to rebuild the company. The challenges were undeniable, but for those who chose to stay, there was the promise of being part of something extraordinary—a chance to write the next chapter of WeWork’s story.
Lessons From October 3rd
- Transparency is Non-Negotiable
The lack of clear communication allowed rumors and anxiety to grow. Leaders must prioritize transparency, especially in turbulent times, to keep teams aligned and focused. - Leadership in Crisis Matters
Marcelo’s calm, clear, and actionable message turned panic into possibility. Strong leadership during a crisis can inspire confidence and set the tone for recovery. - Focus on the Core Mission
Despite the chaos, employees stayed committed to improving the core product. A clear mission keeps teams grounded and motivated, even during uncertainty. - Reframing Challenges as Opportunities
Marcelo reframed disaster into a critical moment for growth, energizing the team to move forward. Perspective is powerful in shifting mindsets from defeat to determination. - Unity Through Shared Purpose
Marcelo’s willingness to risk his reputation to rebuild the company inspired solidarity. Teams rally when they feel their leaders are truly invested in the mission.