WeWork Organizational Structure Overview

Under the leadership of co-founder and former CEO Adam Neumann WeWork organizational structure was complex. Figure 1 below is a ‘simplified’ version of WeWork organizational structure the company submitted for IPO Prospectus on August 2019. The structure fails to clearly illustrate the organization of the business from the viewpoint of who reports to whom. It also fails to clearly indicate the flow of information, an essential component of a good organizational structure.

Figure 1 We Work organizational structure under Adam Neumann

If this is a ‘simplified’ version, it would be safe to assume that the original version would be much more difficult to comprehend. Ineffective organizational structure is one of the main reasons why global flexible workspace provider faced near bankruptcy in 2019.

After the departure of Adam Neumann, the new CEO Sandeep Mathrani restructured the business simplifying the organizational structure to a great extend with a clear pattern for information flow.

Figure 2 Current pattern of WeWork organizational structure

Organizational structure of WeWork can be classified as hierarchical. Such a structure offers advantages to the co-working giant such as creating a landscape for Sandeep Mathrani to turn around the business to make it suitable for long-term. Hierarchical structure offers clear delegation of authority and encourages specialization among employees at all levels.

On the negative side, hierarchy can cause rivalries between various departments. It can also slow down the implementation of proposed changes through loss or misinterpretation of information along the hierarchy. The current organizational structure of WeWork may change in the foreseeable future because the structural changes by Mathrani are far from complete. Mathrani has predicted flexi-working revolution at a global scale[1] and he is striving WeWork to lead such a revolution.

WeWork Inc. Report contains the above analysis of WeWork organizational structure. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on WeWork. Moreover, the report contains analyses of WeWork leadership, business strategy and organizational culture. The report also comprises discussions of WeWork marketing strategy, ecosystem and addresses issues of corporate social responsibility.

[1] Chambers, S. (2022) “WeWork’s ‘grownup in the room’ Sandeep Mathrani predicts office revolution” The Times, Available at: https://www.thetimes.co.uk/article/wework-work-from-home-office-adam-neumann-b6b66mcbv