With its stylish shared workspaces, cucumber-infused water, pool tables and free beer on tap, WeWork was the poster child for a new era of co-working life. Its business model was straightforward: lock in long-term leases on premium real estate, then sublet the space on flexible terms to corporate occupiers ranging from startups to large enterprises.
In January 2019, at its peak, WeWork was valued at $47bn (£40.3bn). But six months later the company suffered a major setback, announcing that it would postpone its initial public offering (IPO), which had been expected to raise up to $4bn (£3.4bn).
WeWork was founded in 2010 by the charismatic entrepreneur Adam Neumann, who aimed to revolutionise the concept of office space. But his claim that the company would “elevate the world’s consciousness” was not enough to persuade investors to back business, which required significant funding.
Although WeWork was generating revenue – $1.5bn (£1.1bn) in the first half of 2019 – its IPO filing showed that losses ballooned to more than $900m (£670m) in the first six months of the year, which followed full-year net losses of $1.9bn (£1.4bn) in 2018. Crucially, investors were uneasy about how the business would perform in a recession. The company had committed to $47bn (£35bn) in lease obligations but had secured just $4bn (£2.9bn) in future customer revenues.
‘There was no plan B’
Mo Omaizat had just been named international CFO at WeWork when news of the failed IPO was announced. “The party was over five days after I arrived,” he recalls. “There was this big growth story carrying the company along, then no plan B after the aborted IPO. The founder and much of the management team had stepped down and employees were confused. Suddenly, the job I had been hired to do looked very different.”
WeWork lost $3.2bn (£2.7bn) in 2020, as lockdowns around the world forced the firm to shut its co-working spaces. But the company’s financials began to improve under its new chief executive, Sandeep Mathrani, a veteran retail real estate executive. WeWork cut its overhead costs and operating expenses, improving its free cash flow. By December 2020, it had exited 106 underperforming or unopened locations and negotiated more than 100 lease amendments, which reduced future payments by $4bn (£3bn).
Between 2019 and 2021, Omaizat – who is now the CFO of Taxfix, a consumer tax platform – led the restructuring of WeWork across EMEA, China and APAC. What was originally meant to be a high-growth leadership role quickly turned into a mission to stabilise the financials, rebuild trust among investors and reshape the company’s future under intense public scrutiny. Here’s what the experience taught him.
Reshape the narrative
“CFOs should frame restructuring not as a retreat, but as strategic reset, an opportunity to realign operations, shed inefficiencies and position the business for long-term value creation,” Omaziat says. Many great companies have emerged stronger after restructuring, he adds.
The only real way to build trust is for people to see their leaders as genuine
After WeWork delayed its IPO and reduced its estimated market value to $10bn (£8.5bn), investors began focusing on viability rather than vision, Omaziat explains. Stakeholders who were once effusive about growth began seeking cost savings, operational efficiency and productivity gains. Instead of fixating on what had been lost, however, Omaziat focused on what could be rebuilt, emphasising resilience, re-invention and a return to core strengths.
“Helping investors imagine what a leaner, smarter and more focused version of the company could look like was key to shifting the mindset from damage control to value creation,” he says. “At the same time, doubling down on WeWork’s core value proposition – the sense of community that had always set us apart – was what reignited momentum. It reminded people what we were building toward, not just what we were trying to fix.”
In 2021, two years after its failed IPO, WeWork went public through a merger with a special-purpose acquisition company, BowX Acquisition Corp., securing a backdoor listing that valued the business at $9bn (£6.7bn). Despite disclosing sustained financial losses, shares rose 13% on the debut – a signal, perhaps, of investor belief in a more disciplined, future-ready version of the company. “It was a humbler WeWork,” Omaziat reflects, “but one with a clearer focus on sustainability and trust.”
Lead with data
Restructuring is never just a financial exercise, it’s a high-stakes leadership moment. It involves multiple stakeholders, from boards and regulators to creditors and employees – and thrusts CFOs to the centre of complex, often emotionally charged negotiations. Compliance risks spike, especially around debt, layoffs and asset sales.
“In these moments, the most effective CFOs go beyond financial oversight,” Omaziat explains. “The role is about steering the business by building conviction through data, customer insights and strategic clarity.”
That means being fully transparent, with clear visibility of burn rates, lease liabilities and debt covenants and using facts to ensure that teams including real estate, product operations and sales and marketing are aligned. When asking others to make sacrifices or share in the pain, data becomes your most powerful tool for trust and alignment, Omaziat says. “In a crisis, CFOs lead best not just by controlling the narrative, but by clarifying it. When trust wavers, logic, transparency and strategic focus become the foundation for collective action.”
Culture can break – or be rebuilt
“For a business once proud of its purpose and identity, rebuilding trust – both internally and externally – was a significant challenge during the restructuring,” says Omaziat.
Many employees had joined WeWork because they believed in its values. Over time, however, the company’s sense of purpose had been eroded. Re-establishing it required more than new strategies, Omaziat says, it demanded authentic leadership. “The only real way to build trust is for people to see their leaders as genuine,” he says. “That meant being transparent about what I knew and, just as importantly, what I didn’t. That openness is what helped foster productive conversations with investors and rebuild trust across the business.”
Omaziat recalls a virtual town hall, when employees asked about the company’s cash position. Rather than offer a vague or scripted response, he replied: “Let’s go find out together.” He then gave a candid presentation of WeWork’s financials. That simple act of honesty resonated more than any polished reassurance, Omaziat says: “It marked a turning point in rebuilding credibility.”
Restructuring often tests employee trust. CFOs, who are typically seen as enforcers, must balance financial discipline with empathy. “Show up not just as the financial steward, but as a credible leader aligned with the company’s values. When restructuring involves reducing headcount, it’s vital to remember that behind every number is a person,” Omaziat says.
Even when difficult financial decisions are necessary to build a more sustainable company, leaders must acknowledge the human impact of those choices. “It’s about treating people with respect, transparency and care throughout the process,” he adds. “That’s how you preserve trust – even in the hardest moments.”
With its stylish shared workspaces, cucumber-infused water, pool tables and free beer on tap, WeWork was the poster child for a new era of co-working life. Its business model was straightforward: lock in long-term leases on premium real estate, then sublet the space on flexible terms to corporate occupiers ranging from startups to large enterprises.
In January 2019, at its peak, WeWork was valued at $47bn (£40.3bn). But six months later the company suffered a major setback, announcing that it would postpone its initial public offering (IPO), which had been expected to raise up to $4bn (£3.4bn).
WeWork was founded in 2010 by the charismatic entrepreneur Adam Neumann, who aimed to revolutionise the concept of office space. But his claim that the company would “elevate the world’s consciousness” was not enough to persuade investors to back business, which required significant funding.
