WeWork is considering ending its plans for WeLive, its communal living program based in Crystal City near Washington D.C., Bloomberg reports from anonymous sources.
It is also reportedly weighing options for its second location, on New York City’s Wall Street, although nothing is decided and talks are still in early stages.
WeLive allows customers to rent fully-furnished apartments for stays of one night or longer.
The program was one of the ways the office-sharing startup tried to branch out under former CEO Adam Neumann in recent years. The company also opened a school, WeGrow, which closed last year. The company was once valued as high as $47 billion.
However, last year’s failed IPO marked a downturn for the company, which began to scale back its plans for growth. Aside from canceling WeGrow, WeWork began selling off nonessential holdings like its stake in The Wing, and did away with its plans to build a 36-story tower in Seattle that would’ve housed both WeWork and WeLive.
In addition, the company was subject to a lawsuit after reportedly reneging plans for its $450 million investment in a San Francisco development that was supposed to showcase WeLive.
The company was in talks with SoftBank on a $3 billion deal to acquire some of the company and save it from its dire straits, but SoftBank backed out of the deal during the coronavirus pandemic. CEO Masayoshi Son now says the idea to buy the company was a mistake, although the company said it still supports WeWork and believes it will come out of the pandemic better than before.
The pandemic compounded WeWork’s troubles, forcing hundreds of layoffs in addition to the 2,400 the company let go after the failed IPO last year.
WeWork is currently offering discounts for WeLive, with two free months if new tenants sign annual leases at its two locations in Crystal City and Wall Street, Bloomberg reports.
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