Flexible office firm IWG just bought a majority stake in The Wing, months after the women-focused co-working startup announced mass layoffs
- IWG just purchased a majority stake in woman-centered coworking space The Wing.
- CEO Mark Dixon said in a statement he aims to empower "future generations of female entrepreneurs."
- Audrey Gelman co-founder resigned as CEO last year following reports of harassment at The Wing.
IWG, the flexible office space firm founded by English billionaire Mark Dixon, just bought a majority stake in The Wing.
Dixon announced IWG's investment into The Wing on Friday. The Wing's locations in New York, San Francisco, and other major cities would add to IWG's 3,300 in over 100 countries.
Economic downturn following the COVID-19 pandemic caused IWG shares to slide 21% year-over-year, but Dixon recently told Forbes he expects the firm to grow following cuts to operational costs and tightened spending.
"For the past thirty years, we have been at the forefront of meeting the needs of people in a new and evolving world of work and look forward to partnering with The Wing to empower current and future generations of female entrepreneurs, providing them with a place digitally, and in person to help each other succeed professionally," Dixon said in a statement to Insider.
An IWG spokesperson declined to comment on the financial terms of the deal. Bloomberg first reported the deal.
"Partnering with IWG provides an exciting opportunity to expand our spaces and network designed for women during a time of increasing demand for alternative work environments in the midst of the pandemic and shifting workplace norms," Lauren Kassan, cofounder of The Wing said in a statement to Insider.
Kassan and cofounder Audrey Gelman launched The Wing in 2015 as a co-working community for women, charging a $215 monthly membership fee for panels and networking events with powerful women.
The Wing, a former Silicon Valley darling that raised $75 million in Series C, underwent a leadership makeover in 2020 after former employees said they experienced racist and anti-LGBTQ harassment and discrimination by managers. Gelman publicly apologized to Black women and other women of color for failing to protect them from abuse after stepping down as CEO.
Financial trouble during the COVID-19 pandemic led The Wing to lay off half of the employees at its headquarters last year.
The Wing's fall from grace mirrors fellow co-working spaces WeWork and Knotel.
WeWork, founded by eccentric entrepreneur Adam Neumann, delayed and later cancelled an initial public offering after posting losses of $1.6 billion. Reports of excessive partying and "cult-like" culture raised concerns over Neumann's leadership, prompting the board to oust him as CEO.
WeWork announced global job cuts following the COVID-19 pandemic weakened demand for office spaces. Between March and May, 435 total employees have been affected by the pandemic at coworking firms Convene, Industrious, and Knotel.