(NEW YORK, NEW YORK)— While Google was in talks to lease Toronto office space from WeWork, the tech giant has chosen to work with IWG-owned Spaces instead, according to a report from Bloomberg. Google will lease 24,000 square feet of office space from Spaces in Royal Bank Plaza, a new development in downtown Toronto.
Although no representatives from Google have given official comment, the decision comes after WeWork’s abysmal IPO launch and amid a slew of bad press for the company. Partnerships with big companies like Google were essential to the WeWork’s long-term survival and growth, The Observer reports. As the company flounders, losing multiple top-tier execs and considering thousands of layoffs on the horizon, rejection from a big company like Google only bodes more ill.
WeWork has garnered comparisons to its competitor IWG for more than just its business model: IWG filed for bankruptcy protectionin 2003, and seemed to be on the brink of collapse, much as WeWork is today. Now, the company is enjoying a wave of positive pressin the wake of WeWork’s fall, and is hailed as a profitable, functional alternative for the co-working model.
