Failed Deal with Google Adds to WeWork Woes

Amid WeWork’s downward spiral, Google turns to competitor IWG

Toronto’s 1 Royal Bank image courtesy of thebulletin.ca

(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.

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