In a surprising statement, WeWork CEO David Tolley recently declared, “It’s been a great year for WeWork.” That might sound shocking considering the coworking company filed for bankruptcy in 2023. But today, WeWork is a case study in resilience—and its turnaround offers powerful lessons for any small business navigating uncertainty.
Key Takeaways for Entrepreneurs:
- WeWork’s recovery was driven by cost discipline, company culture, and strategic clarity.
- The company is exceeding demand expectations, especially in urban markets.
- Hybrid work continues to grow, making flexible office spaces vital infrastructure.
- Small businesses thrive by staying lean, focused, and purpose-driven.
- A successful comeback depends on fixing the right problems—not everything at once.
WeWork’s Business Turnaround: From Bankruptcy to Stability
Just two years ago, WeWork’s name was almost synonymous with corporate failure. After burning through billions in venture capital, the company filed for bankruptcy and lost public trust. But under Tolley’s leadership, WeWork has:
- Restructured nearly 170 leases
- Wiped out $4 billion in debt
- Reduced its footprint to only the highest-performing locations
Most importantly, WeWork is now cash-flow positive—a critical milestone that marks its return to operational health.
Small Business Lesson: Reinvention is Possible—With the Right Plan
Tolley’s leadership strategy revolves around three key principles: Culture, Clarity, and Cost Discipline. These aren’t just buzzwords. They’re foundational pillars that small business owners can implement today.
1. Culture Is a Growth Engine
Tolley rebuilt internal morale by establishing transparency, clear goals, and a culture of accountability.
For small businesses—especially hybrid or remote teams—a strong culture isn’t a perk, it’s a necessity. It fuels retention, productivity, and brand identity.
2. Clarity Creates Focus
WeWork scaled back from trying to serve every market and instead focused on high-demand, high-efficiency spaces.
Small business owners should ask:
What do we do best—and what should we stop doing?
The clearer your offer, the stronger your positioning.
3. Cost Discipline Keeps You Nimble
WeWork cut non-essential spending and doubled down on its core product: flexible workspaces.
For SMBs, this means every expense should serve your value proposition. If it doesn’t, it’s time to reevaluate.
Flexible Workspaces Are the Future of Business
One of the more surprising insights from Tolley’s interview is that demand for coworking spaces is rising—especially in high-cost cities. Remote and hybrid work models are not fading away, and many small teams want affordable, ready-to-use spaces without long-term commitments.
Ways Small Businesses Can Leverage Flexible Work:
- Host networking events or meetups in coworking spaces to attract leads.
- Test new markets by using shared offices instead of signing costly leases.
- Build brand presence by partnering with coworking communities through sponsorships or collaborations.
The Bigger Lesson: Reinvention Is a Leadership Skill
What makes WeWork’s revival inspiring isn’t just the numbers—it’s the mindset. Tolley didn’t just “fix” WeWork; he reimagined its future. That kind of adaptive thinking is essential for small business owners navigating today’s volatile landscape.
When the road ahead looks uncertain, ask:
- What’s outdated in my business model?
- Where am I spending time or money with little return?
- Who are the believers on my team, and how can I empower them?
Final Thought: Your Comeback Might Be Just One Strategy Away
Your small business may not be operating at WeWork’s scale, but the principles behind its revival apply to companies of all sizes.
If you’re facing challenges, take this as your sign to:
- Get clear on your mission
- Prioritize culture intentionally
- Practice smart financial discipline
Business turnaround strategies work best when guided by clarity—not chaos.
