The coworking company is not having much luck. Still suffering from the pandemic's impact, WeWork has been going through a global crisis. In a previous REsource report, the company stated that Brazil would not be affected—however, the signs say otherwise. 

Recently, the company lost space to rival Spaces, run by the British group IWG. The unit known as Alto da Lapa is now managed by Tiago Alves, CEO of Regus/Spaces. 

“It was a quick implementation; in less than 30 days we took over. Once WeWork was leaving the unit, the landlord chose us as new operators to professionalize the space and meet customer demands,” says Alves. 

Moreover, the American company received another blow, also from IWG and the Brazilian judiciary. In March 2023, the company was sued for unfair competition after linking Google ads to appear first when searching for the name Regus. 

WeWork tried to appeal, but the 1st Reserved Chamber of Corporate Law of the São Paulo Court of Justice denied it and ruled in favor of the competitor—the decision came in May this year. 

 “The case has already been decided and created a precedent on the matter. If you search, you'll see that other companies are using this precedent in other cases as well. I believe this shows that Brazil and the internet are not lawless; good relations between competitors must be preserved. Justice in this case was done, proving once again that the Brazilian market does have rules,” says the Regus and Spaces executive. 

In the United States, WeWork turned to the American judiciary for a bankruptcy recovery process, which was accepted, giving the company extra breathing room. To emerge from bankruptcy, the company negotiated with its main creditor, SoftBank Group Corp., with whom they reached a restructuring agreement—leaving co-founder Adam Neumann out. 

On the other side of the world, in India, WeWork is leaving the Asian country and selling its stake to the Indian company Real Trustee and Advisory Company. According to local media, the company’s exit will not affect the region’s coworking market. 

After emerging from bankruptcy, CEO David Tolley left his position, and the company is now led by John Santora. In April, the company rejected the co-founder’s $650 million offer.  

According to Reuters, before bankruptcy, the company was valued at $47 billion (2019); it was considered the most valuable startup in the US. Now, it is estimated that the company's value is about $750 million, a difference of 98.4%. 

Under new management, the fate of WeWork is as solid as its lease at WTorre Morumbi.