April 25, 2025 • 5 mins
WeWork CEO John Santora is looking to benefit from uncertainty over tariffs. He speaks with Bloomberg's Jonathan Ferro, Lisa Abramowicz, and Annmarie Hordern.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news been.
Speaker 2 (00:08):
Very mixed for earning so far this week.
Speaker 3 (00:10):
Large corporations from PEPSI to p ANDNG cutting their outlooks
due to Trump's tariff policy. One company, however, thinks they'll
benefit from the uncertainty.
Speaker 2 (00:18):
We Work, which.
Speaker 3 (00:19):
Provides coworking spaces for companies and individuals. It's hoping that
market risks will help it bounce back from bankruptcy. Joining
us now is that we work?
Speaker 2 (00:27):
CEO? John Santora, John, it's good to see us, sir.
Thanks for being mid morning. John, give me the strategic
cup date.
Speaker 3 (00:32):
What is the strategy now and how has it changed
in this certain period for the company compared to a
very uncertain period for the company a number of years ago.
Speaker 4 (00:40):
So where we work stands today. We're a maturing company.
We're a company that has no debt. We're investing in
our portfolio around the world. We're investing in our members
and our people. So it's a very different place today
than it has been in the past.
Speaker 2 (00:53):
Does it rely on a different kind of business?
Speaker 4 (00:55):
Our business is flexibility, right, and to be able to
provide from one to one thousand seats for companies for
the entrepreneurs that's always been a part of our business.
Right it's about twenty five twenty seven percent of our business.
Then you have the smaller and mid sized companies fifty people,
hundred people, and then you have that whole enterprise platform
(01:16):
that we have which has been really growing the last
year or so.
Speaker 3 (01:20):
Are you finding those changes are coming because of what
developed during the pandemic coming out of the other side,
It's not what forced the issue for the latch of enterprises.
Speaker 4 (01:27):
I think if you look historically during different markets, right,
there's always that downturn, there's always that need to sub
lease space. We always take too much space, and good
times we'd get rid of too much space, and bad
times we fill that gap. So giving them twenty or
twenty five percent of their portfolio, that's flexible increase it,
decrease it without taking the hit to your books, without
(01:48):
writing off that space and writing off all the capital,
and being able to provide uh I that flexibility in
markets around the world is key.
Speaker 5 (01:57):
So where are we right now with respect to the
ends certainty that we hear from corporate executives around the country,
is this a time where they want to ramp up
their flexibility and increase their footprint with you this or
pull it back because they actually see that as a
lever that they can pull without being seen too much.
Speaker 4 (02:13):
This is a time any pores, A recession or whatever
is not good for any company. Right for us, our
clients are saying, I'm going to with the pause. I'm
not sure if I'm going to take more space, I'm
not sure if I'm going to cut back.
Speaker 1 (02:28):
They pretty much are pausing.
Speaker 4 (02:30):
With us, and that doesn't cost them anything.
Speaker 1 (02:32):
Right, they stay in.
Speaker 4 (02:33):
Our spaces, they'll move, they'll adapt in different markets.
Speaker 1 (02:37):
We talked about it. You talked about India earlier on
the show.
Speaker 4 (02:40):
We're seeing a big move out to India with our
clients in all the big banks, all the financial institutions
are growing their presence in India. The clients you mentioned,
Apple and so forth, they're all looking to take more
space in India. But are they going to take ten
and fifteen year leases with the uncertainty of what's going
on in the market, look to a player like us
(03:02):
to give them that flexibility.
Speaker 5 (03:03):
Just to be clear, are you seeing stasis when it
comes to leasing right now?
Speaker 1 (03:07):
Or are you seeing.
Speaker 5 (03:07):
Leases increase in places like India and decrease in places
that previously have been popular. I'm wondering whether it's even
some of the Northeast cities.
Speaker 4 (03:16):
I think it's a little too early to tell what
the long term effect will be. But you know, in
discussions with CEOs and CFOs, are you willing to make
that fifteen year commitment to a market today? With the uncertainty,
you have to pause. You have to think about it.
You have to think whether or not to invest that
major capital in a market, at least for this short term.
Speaker 5 (03:38):
You have to step back in the go go days
of we Work. I remember that every time a building
was getting rebranded, it was going to be a WEE work.
Speaker 1 (03:45):
When I was walking around.
Speaker 5 (03:46):
The city and there was this massive expansion plan and
then there was a retrenchment.
Speaker 1 (03:51):
Are you back in expansion plan?
Speaker 5 (03:52):
Are you looking for acquisitions in terms of properties or
are you kind of happy with your footprint and just
expanding in other ways.
Speaker 4 (03:59):
Yeah, we have a really good footprint now it's been restructured.
Speaker 1 (04:03):
We're in the markets we want to be in.
Speaker 4 (04:05):
We're in the markets that are our members want to
be We're in the right product Over time, though, for
the first time in the history of the company. We're
going through a traditional lease exploration, so we'll look to
upgrade in some markets. We may look to leave a market,
but that's.
Speaker 1 (04:20):
Going to be a rare, rare, rare case.
Speaker 4 (04:23):
We like the markets that we're in, so we're gonna
do some upgrades here and there.
Speaker 5 (04:26):
During the pandemic, we saw a number of companies move
from New York to Florida. Are you seeing companies still
leave New York?
Speaker 4 (04:34):
You know, I'm not grounded in real estate and grounded
pretty much in New York real estates where I've always
lived in New York and always worked out in New York.
The New York market is the It's the capital of
the world, right It's the capital of finance. It's the
capital of most companies. Their headquarters are there. A lot
of companies or headquarters are there. It will always have
(04:55):
a presence, it will always be important.
Speaker 1 (04:57):
They'll always be headquarters.
Speaker 4 (04:59):
There be some changes though over time, people will adapt.
Speaker 1 (05:03):
When it comes to.
Speaker 5 (05:04):
New markets that are across the US, are you seeing
more of a build up.
Speaker 1 (05:08):
No, we're not West West Coast.
Speaker 4 (05:10):
Yeah, we're not seeing that much. We're seeing markets start
to return. I was in San Francisco three times so
far this year. We're seeing that market start to return.
We're seeing people on the street, we're seeing buildings start
to fill up.
Speaker 3 (05:20):
Finally cleaned up Basisi. Are you happy with progress?
Speaker 1 (05:23):
They've made progress. They've definitely made progress.
Speaker 2 (05:26):
One needs to change that. How do they fix this mess?
Speaker 4 (05:28):
I think I think part of it is, you know,
it's security, it's safety.
Speaker 1 (05:32):
Right.
Speaker 4 (05:32):
People need to feel safe when they're going to work.
They need to feel safe as they're walking the streets.
They need to feel safe on the subways and the
transit systems.
Speaker 3 (05:40):
John it's going to see you, sir, great. Thanks, thank
you for having me. John Son soa that we work
CEO
Bloomberg Audio Studios, podcasts, radio news been.
Speaker 2 (00:08):
Very mixed for earning so far this week.
Speaker 3 (00:10):
Large corporations from PEPSI to p ANDNG cutting their outlooks
due to Trump's tariff policy. One company, however, thinks they'll
benefit from the uncertainty.
Speaker 2 (00:18):
We Work, which.
Speaker 3 (00:19):
Provides coworking spaces for companies and individuals. It's hoping that
market risks will help it bounce back from bankruptcy. Joining
us now is that we work?
Speaker 2 (00:27):
CEO? John Santora, John, it's good to see us, sir.
Thanks for being mid morning. John, give me the strategic
cup date.
Speaker 3 (00:32):
What is the strategy now and how has it changed
in this certain period for the company compared to a
very uncertain period for the company a number of years ago.
Speaker 4 (00:40):
So where we work stands today. We're a maturing company.
We're a company that has no debt. We're investing in
our portfolio around the world. We're investing in our members
and our people. So it's a very different place today
than it has been in the past.
Speaker 2 (00:53):
Does it rely on a different kind of business?
Speaker 4 (00:55):
Our business is flexibility, right, and to be able to
provide from one to one thousand seats for companies for
the entrepreneurs that's always been a part of our business.
Right it's about twenty five twenty seven percent of our business.
Then you have the smaller and mid sized companies fifty people,
hundred people, and then you have that whole enterprise platform
(01:16):
that we have which has been really growing the last
year or so.
Speaker 3 (01:20):
Are you finding those changes are coming because of what
developed during the pandemic coming out of the other side,
It's not what forced the issue for the latch of enterprises.
Speaker 4 (01:27):
I think if you look historically during different markets, right,
there's always that downturn, there's always that need to sub
lease space. We always take too much space, and good
times we'd get rid of too much space, and bad
times we fill that gap. So giving them twenty or
twenty five percent of their portfolio, that's flexible increase it,
decrease it without taking the hit to your books, without
(01:48):
writing off that space and writing off all the capital,
and being able to provide uh I that flexibility in
markets around the world is key.
Speaker 5 (01:57):
So where are we right now with respect to the
ends certainty that we hear from corporate executives around the country,
is this a time where they want to ramp up
their flexibility and increase their footprint with you this or
pull it back because they actually see that as a
lever that they can pull without being seen too much.
Speaker 4 (02:13):
This is a time any pores, A recession or whatever
is not good for any company. Right for us, our
clients are saying, I'm going to with the pause. I'm
not sure if I'm going to take more space, I'm
not sure if I'm going to cut back.
Speaker 1 (02:28):
They pretty much are pausing.
Speaker 4 (02:30):
With us, and that doesn't cost them anything.
Speaker 1 (02:32):
Right, they stay in.
Speaker 4 (02:33):
Our spaces, they'll move, they'll adapt in different markets.
Speaker 1 (02:37):
We talked about it. You talked about India earlier on
the show.
Speaker 4 (02:40):
We're seeing a big move out to India with our
clients in all the big banks, all the financial institutions
are growing their presence in India. The clients you mentioned,
Apple and so forth, they're all looking to take more
space in India. But are they going to take ten
and fifteen year leases with the uncertainty of what's going
on in the market, look to a player like us
(03:02):
to give them that flexibility.
Speaker 5 (03:03):
Just to be clear, are you seeing stasis when it
comes to leasing right now?
Speaker 1 (03:07):
Or are you seeing.
Speaker 5 (03:07):
Leases increase in places like India and decrease in places
that previously have been popular. I'm wondering whether it's even
some of the Northeast cities.
Speaker 4 (03:16):
I think it's a little too early to tell what
the long term effect will be. But you know, in
discussions with CEOs and CFOs, are you willing to make
that fifteen year commitment to a market today? With the uncertainty,
you have to pause. You have to think about it.
You have to think whether or not to invest that
major capital in a market, at least for this short term.
Speaker 5 (03:38):
You have to step back in the go go days
of we Work. I remember that every time a building
was getting rebranded, it was going to be a WEE work.
Speaker 1 (03:45):
When I was walking around.
Speaker 5 (03:46):
The city and there was this massive expansion plan and
then there was a retrenchment.
Speaker 1 (03:51):
Are you back in expansion plan?
Speaker 5 (03:52):
Are you looking for acquisitions in terms of properties or
are you kind of happy with your footprint and just
expanding in other ways.
Speaker 4 (03:59):
Yeah, we have a really good footprint now it's been restructured.
Speaker 1 (04:03):
We're in the markets we want to be in.
Speaker 4 (04:05):
We're in the markets that are our members want to
be We're in the right product Over time, though, for
the first time in the history of the company. We're
going through a traditional lease exploration, so we'll look to
upgrade in some markets. We may look to leave a market,
but that's.
Speaker 1 (04:20):
Going to be a rare, rare, rare case.
Speaker 4 (04:23):
We like the markets that we're in, so we're gonna
do some upgrades here and there.
Speaker 5 (04:26):
During the pandemic, we saw a number of companies move
from New York to Florida. Are you seeing companies still
leave New York?
Speaker 4 (04:34):
You know, I'm not grounded in real estate and grounded
pretty much in New York real estates where I've always
lived in New York and always worked out in New York.
The New York market is the It's the capital of
the world, right It's the capital of finance. It's the
capital of most companies. Their headquarters are there. A lot
of companies or headquarters are there. It will always have
(04:55):
a presence, it will always be important.
Speaker 1 (04:57):
They'll always be headquarters.
Speaker 4 (04:59):
There be some changes though over time, people will adapt.
Speaker 1 (05:03):
When it comes to.
Speaker 5 (05:04):
New markets that are across the US, are you seeing
more of a build up.
Speaker 1 (05:08):
No, we're not West West Coast.
Speaker 4 (05:10):
Yeah, we're not seeing that much. We're seeing markets start
to return. I was in San Francisco three times so
far this year. We're seeing that market start to return.
We're seeing people on the street, we're seeing buildings start
to fill up.
Speaker 3 (05:20):
Finally cleaned up Basisi. Are you happy with progress?
Speaker 1 (05:23):
They've made progress. They've definitely made progress.
Speaker 2 (05:26):
One needs to change that. How do they fix this mess?
Speaker 4 (05:28):
I think I think part of it is, you know,
it's security, it's safety.
Speaker 1 (05:32):
Right.
Speaker 4 (05:32):
People need to feel safe when they're going to work.
They need to feel safe as they're walking the streets.
They need to feel safe on the subways and the
transit systems.
Speaker 3 (05:40):
John it's going to see you, sir, great. Thanks, thank
you for having me. John Son soa that we work
CEO
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