WeWork secures U.S. federal contract to provide coworking solutions to govt employees

WeWork, an office sharing startup announced on Thursday that it has secured a federal contract in the United States to provide flexible coworking services (FCS) to government employees, as concerns over growing delta variant cases contemplate a full return to offices.

According to WeWork, the flexible co-working services contract is for one year with numerous renewal possibilities.

WeWork will be able to supply government agencies and employees with flexible solutions for the emerging hybrid world of work under the FCS contract. The company was granted the contract with four other pre-approved contractors by the US General Services Administration.

“WeWork is honored to have been awarded the General Service Administration’s new coworking contract, allowing us to help federal employees adjust to a new hybrid world of work,” said WeWork CEO Sandeep Mathrani, in a statement.

The pandemic has resulted in a move away from the conventional stand-alone workplace and toward a more hybrid model in which workers may work from offices, co-working spaces, public locations, and their homes, Reuters stated.

The pandemic has fundamentally changed how work is approached, and now government agencies will have a tool to help employees succeed while saving costs, said Mathrani.

GSA said it is seeking nationwide FCS solutions for federal employees to occupy only the space needed to meet their missions and promote responsible use of taxpayer dollars.

WeWork reported a drop in second-quarter sales from the previous three months, as the Delta variant fueled a slower-than-expected rebound for the first half of the year.

Meanwhile, the Softbank-backed company in March announced intentions to go public via a combination with blank-check company BowXAcquisition Corp. This transaction would be valued at around $9 billion.

Picture Credits: Coworking Insights