1 00:00:00,120 --> 00:00:02,800 Speaker 1: Let me introduce you to a guy named Carl Pierre. 2 00:00:03,480 --> 00:00:06,000 Speaker 1: Carl was twenty five years old when he became an 3 00:00:06,040 --> 00:00:09,480 Speaker 1: employee at the we Work office in d C. He 4 00:00:09,560 --> 00:00:11,799 Speaker 1: was just a few years out of college. He was 5 00:00:11,840 --> 00:00:15,160 Speaker 1: excited about joining this fast growing startup, and he was 6 00:00:15,200 --> 00:00:18,560 Speaker 1: surprised by how much of his job involved working with beer, 7 00:00:19,200 --> 00:00:23,439 Speaker 1: tapping a beer keg, getting licenses to serve beer. And 8 00:00:23,520 --> 00:00:26,440 Speaker 1: one morning he got a call there had been a 9 00:00:26,440 --> 00:00:31,280 Speaker 1: beer disaster. This one dude, who turns out was like 10 00:00:31,320 --> 00:00:33,879 Speaker 1: a guest of a member or something, was so like 11 00:00:34,159 --> 00:00:36,360 Speaker 1: gung ho trying to get beer out. He broke the tap, 12 00:00:36,840 --> 00:00:41,240 Speaker 1: beer started pouring out, and he's walked away. So I 13 00:00:41,280 --> 00:00:43,920 Speaker 1: get a call the next day, the very next day, 14 00:00:44,040 --> 00:00:47,360 Speaker 1: from the shoe store underneath our Chinatown location saying, dude, 15 00:00:48,080 --> 00:00:51,000 Speaker 1: everything all of our inventories covered in gross, sticky beer, 16 00:00:51,280 --> 00:00:53,240 Speaker 1: Like what the hell is going on? And I looked 17 00:00:53,240 --> 00:00:55,960 Speaker 1: through the security recordings and I'm like I wanted to 18 00:00:56,000 --> 00:00:58,800 Speaker 1: scream and like break everything. I was like this guy, 19 00:00:59,480 --> 00:01:01,920 Speaker 1: this dude just uh. It was like, you know, a 20 00:01:02,000 --> 00:01:04,320 Speaker 1: keg holds what nine nine beers, So imagine nine nine 21 00:01:04,360 --> 00:01:07,760 Speaker 1: beers pouring down and pooling and yeah, of course it 22 00:01:07,840 --> 00:01:10,000 Speaker 1: leaked through. To take out my iPhone and take photos 23 00:01:10,000 --> 00:01:11,880 Speaker 1: from the insurance company. Oh, it was this whole thing. 24 00:01:12,600 --> 00:01:15,319 Speaker 1: Beer was a central part of we worked brand, and 25 00:01:15,360 --> 00:01:18,039 Speaker 1: here it was leaking through the floor and it was 26 00:01:18,080 --> 00:01:20,680 Speaker 1: just like pools of beer. The entire place smells like 27 00:01:20,680 --> 00:01:24,000 Speaker 1: a brewery. So not only did our space smell like awfulness, 28 00:01:24,000 --> 00:01:26,440 Speaker 1: like it smelled like a yeast factory because it just 29 00:01:26,600 --> 00:01:28,440 Speaker 1: kind of like percolated over the night too. When we 30 00:01:28,480 --> 00:01:30,160 Speaker 1: wants all the beer poured out, they just stayed that 31 00:01:30,160 --> 00:01:33,080 Speaker 1: way and then you know, the guy's floor to you 32 00:01:33,120 --> 00:01:34,720 Speaker 1: just smelled like the entire block it smell like beer 33 00:01:34,760 --> 00:01:37,280 Speaker 1: because when you open the doors, like a full keg, 34 00:01:37,400 --> 00:01:40,000 Speaker 1: is so much booze. There's so much liquid and imagine 35 00:01:40,000 --> 00:01:42,320 Speaker 1: pouring all the onto the floor and Lennon just walking 36 00:01:42,319 --> 00:01:47,640 Speaker 1: away for hours. Hours you're listening to Foundering. I'm your host, 37 00:01:47,680 --> 00:01:51,240 Speaker 1: Ellen Hewitt. In the previous episode, we visited Adam Newman's 38 00:01:51,320 --> 00:01:54,760 Speaker 1: childhood Kibbutz. We wanted to understand how it inspired we 39 00:01:54,840 --> 00:01:58,600 Speaker 1: work and Adam's ideas about community and today in episode 40 00:01:58,600 --> 00:02:00,760 Speaker 1: two of our season on we were we're going to 41 00:02:00,880 --> 00:02:03,240 Speaker 1: tell you about what it was like inside we Work 42 00:02:03,360 --> 00:02:06,560 Speaker 1: during its early chaotic years of growth as the company 43 00:02:06,560 --> 00:02:11,160 Speaker 1: burst onto the business scene. We'll start around for a 44 00:02:11,160 --> 00:02:13,840 Speaker 1: few years after the financial crash and the business world 45 00:02:13,960 --> 00:02:16,239 Speaker 1: is getting back on its feet. There's a huge rise 46 00:02:16,280 --> 00:02:19,120 Speaker 1: and remote work, a huge rise and distributed work. That's 47 00:02:19,160 --> 00:02:21,800 Speaker 1: Teddy Kramer and early we Work employee. There are companies 48 00:02:21,800 --> 00:02:24,160 Speaker 1: that don't even have office space that empower their employees 49 00:02:24,160 --> 00:02:26,360 Speaker 1: to work from wherever they are. But we're still human. 50 00:02:26,720 --> 00:02:29,919 Speaker 1: We're still you know, creatures that want to be around 51 00:02:29,919 --> 00:02:34,160 Speaker 1: other people, and people need places. Facebook had just gone public, 52 00:02:34,400 --> 00:02:37,079 Speaker 1: linked in too, and there was this buzz in the air, 53 00:02:37,520 --> 00:02:41,040 Speaker 1: especially around startups two thousand twelve, two thirteen, when it 54 00:02:41,120 --> 00:02:44,519 Speaker 1: was very early, when it was exciting, when that kind 55 00:02:44,520 --> 00:02:48,640 Speaker 1: of startup dream was at its peak. I remember Instagram 56 00:02:48,639 --> 00:02:51,880 Speaker 1: had just been bought by Facebook for a billion dollars, 57 00:02:51,919 --> 00:02:54,320 Speaker 1: So that idea that anyone could just sit there, a 58 00:02:54,360 --> 00:02:57,320 Speaker 1: couple of people, build an app and get rich. Ron 59 00:02:57,400 --> 00:02:59,840 Speaker 1: John Roy was an early customer at we Work. He 60 00:03:00,120 --> 00:03:02,720 Speaker 1: just quit his job to become an entrepreneur. And in 61 00:03:02,760 --> 00:03:04,959 Speaker 1: fact it was Teddy who sold Ron john his we 62 00:03:05,040 --> 00:03:07,480 Speaker 1: Work membership. This is great because I get to go 63 00:03:07,520 --> 00:03:09,520 Speaker 1: back to all my cheesy sales lines that I used 64 00:03:09,520 --> 00:03:12,160 Speaker 1: to give their perspective members. My favorite line I used 65 00:03:12,200 --> 00:03:14,560 Speaker 1: to use was that it's a fortune experience when you're 66 00:03:14,560 --> 00:03:18,080 Speaker 1: not yet a fortune five company. Teddy's customers were mostly 67 00:03:18,080 --> 00:03:22,880 Speaker 1: small businesses, freelancers, and entrepreneurs. For them, getting office space 68 00:03:22,919 --> 00:03:26,880 Speaker 1: was a challenge. Most polices required a commitment of several years. 69 00:03:27,360 --> 00:03:30,000 Speaker 1: We Work offered something different. You could easily rent a 70 00:03:30,040 --> 00:03:32,720 Speaker 1: desk or small office month by month. I think in 71 00:03:32,720 --> 00:03:36,040 Speaker 1: those early days it worked. I loved the idea of 72 00:03:36,080 --> 00:03:38,560 Speaker 1: the facility. I need a conference from great, I can 73 00:03:38,600 --> 00:03:40,480 Speaker 1: walk in and book it. I you know, need a 74 00:03:40,560 --> 00:03:45,320 Speaker 1: desk that's inexpensive and uh is non committal in the 75 00:03:45,360 --> 00:03:48,760 Speaker 1: traditional you know, commercial real estate sense. Um. And also 76 00:03:48,800 --> 00:03:50,400 Speaker 1: I want to be around like minded people. I want 77 00:03:50,440 --> 00:03:53,080 Speaker 1: to be around people who are going through the same 78 00:03:53,080 --> 00:03:56,440 Speaker 1: struggles and going through the same challenges, but also who 79 00:03:56,480 --> 00:03:59,640 Speaker 1: want to celebrate my success. Ron John, who was working 80 00:03:59,680 --> 00:04:01,680 Speaker 1: out of a we Work office in New York, was 81 00:04:01,720 --> 00:04:05,480 Speaker 1: happy to be alongside other startup founders, but more importantly, 82 00:04:05,680 --> 00:04:08,160 Speaker 1: he felt we Worked with selling him something else. It 83 00:04:08,280 --> 00:04:11,640 Speaker 1: was selling him a sense of legitimacy. They delivered a 84 00:04:11,680 --> 00:04:16,640 Speaker 1: great product. The actual space itself. It validated you, especially 85 00:04:16,640 --> 00:04:19,400 Speaker 1: when you're kind of an early stage start up flailing around. 86 00:04:20,320 --> 00:04:22,719 Speaker 1: The space was nice enough that you know, you have 87 00:04:22,760 --> 00:04:25,640 Speaker 1: a meeting, people come in, they think you are doing 88 00:04:25,680 --> 00:04:30,000 Speaker 1: something correct. My parents, who as Indian parents, were very 89 00:04:30,040 --> 00:04:35,120 Speaker 1: nervous about me doing something startup in my thirties. They 90 00:04:35,160 --> 00:04:36,919 Speaker 1: came and they saw and this is when we were 91 00:04:36,960 --> 00:04:40,279 Speaker 1: at the We Work at Broadway, which was on the 92 00:04:40,320 --> 00:04:43,560 Speaker 1: twenty floor, this kind of like gleaming view of the 93 00:04:43,600 --> 00:04:48,279 Speaker 1: financial district. And again they thought we must be doing 94 00:04:48,360 --> 00:04:52,479 Speaker 1: something right, and at the time we weren't. Ron John's 95 00:04:52,480 --> 00:04:54,560 Speaker 1: desk at as We Work office was next to something 96 00:04:54,640 --> 00:04:58,560 Speaker 1: particularly important, the fruit water. It's a big jog of 97 00:04:58,640 --> 00:05:00,960 Speaker 1: drinking water that has fruit cut up into it, kind 98 00:05:00,960 --> 00:05:04,359 Speaker 1: of fancy. So one thing I definitely remember from the 99 00:05:04,400 --> 00:05:07,760 Speaker 1: time was the fruit water. Somehow this kind of became 100 00:05:07,800 --> 00:05:13,320 Speaker 1: a central sales point for the we Work employees and 101 00:05:13,360 --> 00:05:17,560 Speaker 1: even Adam Newman. Anytime their investors in there, or even 102 00:05:17,600 --> 00:05:20,200 Speaker 1: if he was bringing around people to show off the space, 103 00:05:20,560 --> 00:05:23,039 Speaker 1: you could bring them straight to the fruit water, talk 104 00:05:23,120 --> 00:05:26,320 Speaker 1: about it loudly and proclaim, you know, we're in the 105 00:05:26,360 --> 00:05:30,640 Speaker 1: midst of the future of work. And offer the fruit water. Okay, 106 00:05:30,680 --> 00:05:32,760 Speaker 1: so let's back up for a minute. Yes, we are 107 00:05:32,800 --> 00:05:36,240 Speaker 1: actually talking about water that has chopped up fruit floating 108 00:05:36,279 --> 00:05:38,800 Speaker 1: in it. Throughout the course of this story, there's gonna 109 00:05:38,800 --> 00:05:41,240 Speaker 1: be a lot of silly things that are actually important. 110 00:05:41,640 --> 00:05:45,200 Speaker 1: Fruit water is one of those things. It sounds small, 111 00:05:45,240 --> 00:05:47,640 Speaker 1: but it became a symbol of the we Work brand 112 00:05:47,800 --> 00:05:50,880 Speaker 1: in all their offices around the world, and people got 113 00:05:50,920 --> 00:05:53,479 Speaker 1: really into it. The other day, I was looking it 114 00:05:53,560 --> 00:05:55,680 Speaker 1: up on Twitter and I found a picture where the 115 00:05:55,720 --> 00:05:58,839 Speaker 1: fruit water had cantaloupe in it, cut into the shape 116 00:05:58,880 --> 00:06:05,040 Speaker 1: of dolphins. Cantaloup dolphins. Yeah. Actually, one time, I can 117 00:06:05,080 --> 00:06:08,320 Speaker 1: say I looked up and I was sitting on some 118 00:06:08,400 --> 00:06:12,520 Speaker 1: kind of ball, looked to my left and Elliot Spitzer 119 00:06:12,760 --> 00:06:16,760 Speaker 1: was standing right there, kind of looking over looking across 120 00:06:16,839 --> 00:06:20,679 Speaker 1: the entire entire floor with a smile on his face. 121 00:06:20,920 --> 00:06:23,400 Speaker 1: Elliot Spitzer, for those of you who don't know, is 122 00:06:23,440 --> 00:06:27,080 Speaker 1: the former somewhat disgraced governor of New York and he 123 00:06:27,160 --> 00:06:30,480 Speaker 1: was getting Adam's pitch to investors. Look at this excitement 124 00:06:30,520 --> 00:06:33,760 Speaker 1: and energy. Adam was using We Works paying customers to 125 00:06:33,800 --> 00:06:36,400 Speaker 1: attract more money. It was almost like we were animals. 126 00:06:36,400 --> 00:06:39,239 Speaker 1: In a zoo or rats in a lab, like people 127 00:06:39,360 --> 00:06:41,480 Speaker 1: would just kind of stand on the periphery and watch 128 00:06:41,520 --> 00:06:45,080 Speaker 1: everyone sitting there. So if you are an older investor 129 00:06:45,839 --> 00:06:48,760 Speaker 1: who has no idea what's happening, and suddenly you just 130 00:06:48,880 --> 00:06:53,640 Speaker 1: see young kids and shorts with laptops and uh, and 131 00:06:53,839 --> 00:06:58,000 Speaker 1: your your entire construction of work in your mind forever 132 00:06:58,640 --> 00:07:02,280 Speaker 1: has been suits and offices and cubicles, it would definitely 133 00:07:02,320 --> 00:07:06,200 Speaker 1: feel like maybe the secret is here. And it did 134 00:07:06,240 --> 00:07:08,279 Speaker 1: feel like there was something more here than just the 135 00:07:08,360 --> 00:07:12,120 Speaker 1: desks that was intentional on We Works part. From Robjohn's 136 00:07:12,160 --> 00:07:14,120 Speaker 1: point of view, we Work was doing the same thing 137 00:07:14,200 --> 00:07:17,080 Speaker 1: as a lot of other rapidly growing companies in the tents. 138 00:07:17,600 --> 00:07:20,400 Speaker 1: They weren't just selling a product. They were selling something 139 00:07:20,520 --> 00:07:23,560 Speaker 1: much bigger than that. The desks were good, I mean, 140 00:07:23,640 --> 00:07:27,320 Speaker 1: the product was a very good one, but it had 141 00:07:27,360 --> 00:07:29,640 Speaker 1: to be about so much more and it couldn't just 142 00:07:29,720 --> 00:07:32,080 Speaker 1: be stopped at We're going to sell you a good 143 00:07:32,120 --> 00:07:34,880 Speaker 1: desk in a fun environment like it had to be 144 00:07:34,960 --> 00:07:40,600 Speaker 1: about transforming humanity. You're selling the weed generation and transformational 145 00:07:41,640 --> 00:07:44,520 Speaker 1: future of work and life and the way we interact. 146 00:07:45,360 --> 00:07:49,120 Speaker 1: Uber called itself ride sharing, even though it's just kind 147 00:07:49,120 --> 00:07:53,800 Speaker 1: of a modernized taxi fleet, but they had that community 148 00:07:54,080 --> 00:07:58,440 Speaker 1: word embedded into it. And yeah, Adam was constantly evoking 149 00:07:58,480 --> 00:08:02,760 Speaker 1: community when talking about work. It's that community. Being surrounded 150 00:08:02,760 --> 00:08:05,160 Speaker 1: by a group of like minded individuals, being part of 151 00:08:05,240 --> 00:08:09,240 Speaker 1: something bigger than yourself inspires people to work harder, spend 152 00:08:09,240 --> 00:08:11,120 Speaker 1: more time at work, and just have fun doing it. 153 00:08:11,840 --> 00:08:14,120 Speaker 1: We Work wasn't the only coworking space I was active 154 00:08:14,160 --> 00:08:16,880 Speaker 1: at the time, so it had rivals paying attention to 155 00:08:16,920 --> 00:08:20,480 Speaker 1: how it ran its business. One of those rivals was Industrious. 156 00:08:20,840 --> 00:08:24,640 Speaker 1: It's CEO, Jamie Hodari, noticed a few things about We Work. 157 00:08:25,400 --> 00:08:29,040 Speaker 1: Jamie was confused by we Work because Adam spent more 158 00:08:29,080 --> 00:08:32,320 Speaker 1: time talking about community than he did fast internet or 159 00:08:32,320 --> 00:08:35,760 Speaker 1: clean office space. Jamie had done customer research and found 160 00:08:35,760 --> 00:08:38,520 Speaker 1: that the idea of we wasn't that important to people 161 00:08:38,559 --> 00:08:41,200 Speaker 1: who just wanted to rent a desk. But We Work 162 00:08:41,280 --> 00:08:44,680 Speaker 1: was also expanding so rapidly it had gone from zero 163 00:08:44,800 --> 00:08:47,720 Speaker 1: to a billion dollar valuation in less than four years. 164 00:08:48,400 --> 00:08:51,440 Speaker 1: It left Jamie wondering was we Work onto something that 165 00:08:51,520 --> 00:08:54,480 Speaker 1: he wasn't able to see. One of many ways in 166 00:08:54,520 --> 00:08:57,760 Speaker 1: which I think, as a WE Work competitor, you're stuck 167 00:08:57,840 --> 00:09:00,560 Speaker 1: saying like, do they not really get at it. Is 168 00:09:00,600 --> 00:09:03,040 Speaker 1: it that they are out of touch with what the 169 00:09:03,120 --> 00:09:08,040 Speaker 1: actual nature of rising demand is or the actual reasons 170 00:09:08,080 --> 00:09:13,000 Speaker 1: are that adoption rates are rising of their product, or 171 00:09:13,120 --> 00:09:15,559 Speaker 1: is it that they're on another level. They're seeing around 172 00:09:15,559 --> 00:09:18,160 Speaker 1: the next corner, you know, they're seeing everything we're seeing, 173 00:09:18,280 --> 00:09:21,080 Speaker 1: and then the stuff that comes after that, or the 174 00:09:21,120 --> 00:09:24,560 Speaker 1: stuff that people care about but can't actually articulate or 175 00:09:24,559 --> 00:09:27,840 Speaker 1: put into words. So Jamie was questioning whether people really 176 00:09:27,880 --> 00:09:32,360 Speaker 1: wanted to pay for community for the aspirational, scrappy culture 177 00:09:32,400 --> 00:09:35,319 Speaker 1: that we work was selling. The slogans on its walls 178 00:09:35,360 --> 00:09:39,679 Speaker 1: saying better together, do what you love, always exploring cheers. 179 00:09:40,760 --> 00:09:43,280 Speaker 1: Jamie didn't get why Adam never talked directly about real 180 00:09:43,400 --> 00:09:47,599 Speaker 1: estate or business plans. Instead, he talked about humanity and enlightenment. 181 00:09:48,200 --> 00:09:50,280 Speaker 1: I think that was maybe the first sniff for the 182 00:09:50,320 --> 00:09:54,239 Speaker 1: first moment of saying, this company has a kind of oblique, 183 00:09:55,080 --> 00:09:58,040 Speaker 1: indirect way of approaching things that it wasn't a company 184 00:09:58,080 --> 00:10:03,199 Speaker 1: given to straight talk basically um and that ended up 185 00:10:03,240 --> 00:10:05,360 Speaker 1: becoming a predictor of a lot of things to come. 186 00:10:05,880 --> 00:10:09,839 Speaker 1: Adam wanted to do loftier things. He wanted to transform humanity, 187 00:10:09,920 --> 00:10:11,920 Speaker 1: and in his mind, the first step to that was 188 00:10:12,000 --> 00:10:15,559 Speaker 1: transforming work. He wanted to do it by making work fun. 189 00:10:16,440 --> 00:10:18,880 Speaker 1: It sounds simple, but it was a pretty novel idea 190 00:10:19,400 --> 00:10:21,880 Speaker 1: and he put it into action At We Work. It 191 00:10:22,280 --> 00:10:26,840 Speaker 1: sells fun, I mean it sells excitement. You don't even 192 00:10:26,840 --> 00:10:29,000 Speaker 1: have to go out to a bar club. We will 193 00:10:29,040 --> 00:10:31,840 Speaker 1: bring that all to your office space where you sit 194 00:10:31,880 --> 00:10:34,959 Speaker 1: and do work. It's a pretty good deal. The bar 195 00:10:35,280 --> 00:10:38,040 Speaker 1: is now at your desk. We give free beer in 196 00:10:38,040 --> 00:10:40,800 Speaker 1: all of our buildings. We gave nine glasses of beer 197 00:10:40,880 --> 00:10:44,040 Speaker 1: last month, which is a number we're proud of. People 198 00:10:44,160 --> 00:10:48,000 Speaker 1: are staying late at the office. The parties take place 199 00:10:48,160 --> 00:10:53,400 Speaker 1: at the office itself. It's that co mingling of life 200 00:10:53,559 --> 00:10:56,960 Speaker 1: and work and kind of like lack of division between 201 00:10:57,040 --> 00:11:01,240 Speaker 1: your office and party. You're going out to a bar. 202 00:11:02,040 --> 00:11:05,199 Speaker 1: To create that environment, community managers like Teddy had to 203 00:11:05,280 --> 00:11:07,720 Speaker 1: learn how to do a lot of random manual tasks 204 00:11:08,160 --> 00:11:10,480 Speaker 1: like tapping the beer keg or grabbing a bunch of 205 00:11:10,520 --> 00:11:14,000 Speaker 1: members to film a viral video meme. And for those 206 00:11:14,040 --> 00:11:15,719 Speaker 1: who love to google, if you can find the We 207 00:11:15,880 --> 00:11:18,800 Speaker 1: Work Labs Harlem Shake video, I highly recommend you look 208 00:11:18,800 --> 00:11:21,520 Speaker 1: it up. It's actually pretty fun. Um. I'm the mermaid 209 00:11:21,520 --> 00:11:23,560 Speaker 1: in the bottom right corner, so you can find me. 210 00:11:24,480 --> 00:11:27,280 Speaker 1: I'm right there. But but to me, that was that 211 00:11:27,360 --> 00:11:32,680 Speaker 1: was amazing. That was so much fun. Right. Oh that 212 00:11:32,800 --> 00:11:36,160 Speaker 1: is Oh that's you in the mermaidaid. That's quite a look. 213 00:11:36,360 --> 00:11:38,679 Speaker 1: So I'm wearing a purple shell brod and those are 214 00:11:38,720 --> 00:11:42,360 Speaker 1: real shells. Uh that I had to get custom tailored 215 00:11:42,360 --> 00:11:46,960 Speaker 1: to stay up. Um. I had a custom mermaid skirt um, 216 00:11:47,000 --> 00:11:49,240 Speaker 1: and I am front and center dancing as a mermaid 217 00:11:49,559 --> 00:11:52,960 Speaker 1: while making sure that my shells stay up. Um. You 218 00:11:53,000 --> 00:11:54,840 Speaker 1: asked how I felt. I loved it. I thought it 219 00:11:54,880 --> 00:11:58,240 Speaker 1: was so much fun. We worked at something different. It 220 00:11:58,360 --> 00:12:01,240 Speaker 1: was work, but it was fun, which may have come 221 00:12:01,240 --> 00:12:04,880 Speaker 1: from Adam himself. He has this reputation publicly of being 222 00:12:04,920 --> 00:12:09,640 Speaker 1: out of control, aggressive, a partier, a dealmaker, but he 223 00:12:09,679 --> 00:12:14,640 Speaker 1: was also just entertaining. Here's Jamie again. The impression you 224 00:12:14,679 --> 00:12:16,600 Speaker 1: get when you spend a bit of time with them 225 00:12:16,800 --> 00:12:20,800 Speaker 1: is not just of this kind of tall, brash force 226 00:12:20,840 --> 00:12:25,840 Speaker 1: of nature, but also of someone who seems like he's 227 00:12:25,880 --> 00:12:28,760 Speaker 1: having fun. You know, when you hear these landlords saying, 228 00:12:28,760 --> 00:12:31,280 Speaker 1: we did a WorldWind tour of this city and we 229 00:12:31,400 --> 00:12:37,760 Speaker 1: drink tequila and whatever. You know, maybe the unspoken magnetism 230 00:12:37,800 --> 00:12:40,480 Speaker 1: of it is in part that business isn't often that fun, 231 00:12:40,600 --> 00:12:43,199 Speaker 1: you know, it's it's dry, and so spending the day 232 00:12:43,240 --> 00:12:46,160 Speaker 1: with someone who seems like they're on this rocket ship 233 00:12:46,160 --> 00:12:49,240 Speaker 1: and loving every minute of it, that's the most magnetic 234 00:12:49,280 --> 00:12:53,840 Speaker 1: thing of all. This magnetism also pulled in prospective employees. 235 00:12:54,320 --> 00:12:57,400 Speaker 1: When Carl, the community manager in d C, walked into 236 00:12:57,400 --> 00:12:59,560 Speaker 1: a we Work office for his first interview, he had 237 00:12:59,600 --> 00:13:02,680 Speaker 1: never seen anything like it. That was blown away by 238 00:13:02,720 --> 00:13:06,880 Speaker 1: the aesthetics and the the electricity of the room of 239 00:13:06,920 --> 00:13:10,360 Speaker 1: where these people were working. It was just entirely, entirely 240 00:13:10,440 --> 00:13:15,440 Speaker 1: different and very very young, very my generation vibe the 241 00:13:15,520 --> 00:13:19,559 Speaker 1: entire place Carl joined we Work in and he felt 242 00:13:19,600 --> 00:13:23,160 Speaker 1: like he had tumbled into a millennial wonderland. The mid 243 00:13:23,160 --> 00:13:26,640 Speaker 1: century modern everything um. The fact that they had like 244 00:13:26,679 --> 00:13:29,240 Speaker 1: cold brew on tap and all the brands I loved, 245 00:13:29,280 --> 00:13:31,960 Speaker 1: all under one roof. It was just it was overload 246 00:13:31,960 --> 00:13:34,880 Speaker 1: almost um, and it really sold me on the concept. 247 00:13:35,240 --> 00:13:37,920 Speaker 1: We work with a company that celebrated bringing people together, 248 00:13:38,280 --> 00:13:40,760 Speaker 1: and they put that into practice with their own employees. 249 00:13:40,960 --> 00:13:44,360 Speaker 1: Every week, every Monday night, we Work held in all 250 00:13:44,480 --> 00:13:47,680 Speaker 1: hands meeting and it lasted for hours, and it was 251 00:13:47,760 --> 00:13:52,120 Speaker 1: called thank God It's Monday. T g i AM for short. 252 00:13:52,800 --> 00:13:56,199 Speaker 1: Here's Cody Quinn, an early employee. So t g i 253 00:13:56,280 --> 00:14:00,880 Speaker 1: ams were they write that. So they had these company 254 00:14:00,920 --> 00:14:04,000 Speaker 1: what meetings called thank God It's Monday. Um, I literally 255 00:14:04,000 --> 00:14:07,320 Speaker 1: get goose bumps thinking about it, because Mondays were rough. 256 00:14:07,840 --> 00:14:10,480 Speaker 1: Thank God It's Monday was meant to be something fresh 257 00:14:10,559 --> 00:14:14,320 Speaker 1: and different, a celebration about loving your work, but many 258 00:14:14,320 --> 00:14:16,960 Speaker 1: employees seem to hate it and meant staying late at 259 00:14:16,960 --> 00:14:20,200 Speaker 1: work after a long day, often without overtime pay. There's 260 00:14:20,200 --> 00:14:22,160 Speaker 1: a lot of posturing with a lot of like egos. 261 00:14:22,400 --> 00:14:25,120 Speaker 1: People just kind of like peacocking on stage like thank 262 00:14:25,160 --> 00:14:27,720 Speaker 1: God It's Monday. Like they just wanted to be cool 263 00:14:27,880 --> 00:14:31,520 Speaker 1: and like flex their position. And sometimes these meetings turned 264 00:14:31,520 --> 00:14:35,360 Speaker 1: into celebrations for the growing business m seed by Adam. 265 00:14:35,400 --> 00:14:39,320 Speaker 1: Here's Cody again, you know, like after him talking about 266 00:14:39,400 --> 00:14:41,560 Speaker 1: himself for like a half hour, like he's like, all right, 267 00:14:41,600 --> 00:14:43,240 Speaker 1: we're having a party, and then all of a sudden, 268 00:14:43,240 --> 00:14:45,960 Speaker 1: these trays of tequila shots come out and and like 269 00:14:46,040 --> 00:14:49,160 Speaker 1: it's a big party, and like even to the extent 270 00:14:49,240 --> 00:14:52,400 Speaker 1: that there they were encouraging people to get drunk enough 271 00:14:52,480 --> 00:14:56,200 Speaker 1: that they would pay for Uber's home. We Work asn't 272 00:14:56,240 --> 00:14:58,720 Speaker 1: the only company partying like this in the twenty tens. 273 00:14:59,160 --> 00:15:00,760 Speaker 1: If you worked at a art up any time in 274 00:15:00,760 --> 00:15:03,560 Speaker 1: the last decade, maybe some of this sounds familiar to you, 275 00:15:04,040 --> 00:15:07,480 Speaker 1: staying late in the office for mandatory parties, free booze, 276 00:15:07,720 --> 00:15:10,640 Speaker 1: the blurring of life and work. What makes We Work 277 00:15:10,680 --> 00:15:13,840 Speaker 1: special is that they took startup culture to the next level. 278 00:15:14,280 --> 00:15:17,560 Speaker 1: They were actually selling this culture to their customers, and 279 00:15:17,600 --> 00:15:20,120 Speaker 1: We Work found that there was a huge appetite for it. 280 00:15:20,600 --> 00:15:23,840 Speaker 1: The office party that never ends. We'll be right back. 281 00:15:29,240 --> 00:15:31,960 Speaker 1: So before the break, we talked about we Works. Thank 282 00:15:32,000 --> 00:15:35,080 Speaker 1: God it's Monday meetings. These all hands meetings are a 283 00:15:35,120 --> 00:15:38,320 Speaker 1: really important aspect of we Works company culture. It's how 284 00:15:38,360 --> 00:15:40,920 Speaker 1: we Work rallied the troops and shared the inside take 285 00:15:40,960 --> 00:15:43,400 Speaker 1: on what was going on at this rapidly growing company. 286 00:15:43,720 --> 00:15:46,960 Speaker 1: Here's Miguel McKelvey warming up the crowd for Adam at 287 00:15:47,000 --> 00:15:50,040 Speaker 1: one of these meetings. Um, it's just as excited as 288 00:15:50,080 --> 00:15:53,040 Speaker 1: I am. And I'm happy to introduce Adam our CEO, 289 00:15:56,440 --> 00:15:58,720 Speaker 1: and I'm gonna play for you. Recordings of several of 290 00:15:58,760 --> 00:16:02,600 Speaker 1: these meetings from twenty fifteen and right in the middle 291 00:16:02,600 --> 00:16:05,600 Speaker 1: of we Works rise. These tapes were never meant to 292 00:16:05,600 --> 00:16:08,920 Speaker 1: be heard outside of the company ever, and they captured 293 00:16:09,040 --> 00:16:12,640 Speaker 1: this very intriguing and revealing aspect of we Work, this 294 00:16:12,840 --> 00:16:16,560 Speaker 1: internal raw ra. You'll be hearing snippets throughout the season. 295 00:16:17,120 --> 00:16:25,280 Speaker 1: Hey hey, hey, I know you just to set the scene. 296 00:16:25,600 --> 00:16:28,160 Speaker 1: In these meetings, Adam is usually speaking in front of 297 00:16:28,160 --> 00:16:31,520 Speaker 1: a podium. We Work employees are crowded around him, sitting 298 00:16:31,520 --> 00:16:33,920 Speaker 1: on the floor because it's so packed. In one of 299 00:16:33,960 --> 00:16:35,880 Speaker 1: the videos, he's wearing a black t shirt that says 300 00:16:35,960 --> 00:16:39,000 Speaker 1: creator on it. He's standing in front of a gone 301 00:16:39,440 --> 00:16:43,280 Speaker 1: with we Work engraved on it. There's a lot of room. 302 00:16:43,360 --> 00:16:47,480 Speaker 1: Let's sit a little bit in the back. That's great. 303 00:16:48,440 --> 00:16:53,120 Speaker 1: You can sat next to the gone. There's more seats 304 00:16:53,160 --> 00:16:57,240 Speaker 1: over there. This is a different atom from the yearning 305 00:16:57,320 --> 00:17:00,400 Speaker 1: kids struggling to fit in at the Kibbutz. He's different 306 00:17:00,440 --> 00:17:03,680 Speaker 1: also from the guy trying and failing to innovate high 307 00:17:03,720 --> 00:17:06,359 Speaker 1: heels and baby clothing. He had just been featured in 308 00:17:06,440 --> 00:17:10,080 Speaker 1: Forbes in a splashy spread titled inside the Phenomenal Rise 309 00:17:10,119 --> 00:17:13,040 Speaker 1: of We Work, and now he's on stage surrounded by 310 00:17:13,040 --> 00:17:16,680 Speaker 1: his employees and telecasting two hundreds more. I can't get 311 00:17:16,720 --> 00:17:19,600 Speaker 1: over how he keeps introducing himself. I'm Adam, nice to 312 00:17:19,600 --> 00:17:22,119 Speaker 1: meet you. As if they don't know who he is, 313 00:17:22,280 --> 00:17:31,880 Speaker 1: they work for him. Okay, can everybody hear me? Part 314 00:17:31,880 --> 00:17:34,120 Speaker 1: of what made working at We Worked so intense during 315 00:17:34,160 --> 00:17:39,200 Speaker 1: these years was the company's rapid expansion. Look at some numbers. Now, 316 00:17:39,240 --> 00:17:41,720 Speaker 1: these numbers are are actual numbers, so it is what 317 00:17:41,840 --> 00:17:44,280 Speaker 1: it is. Adam used these growth numbers to get his 318 00:17:44,320 --> 00:17:47,400 Speaker 1: employees excited about what they were accomplishing. Think you look 319 00:17:48,200 --> 00:17:52,520 Speaker 1: one building, four buildings, that means you added three still 320 00:17:52,560 --> 00:17:56,280 Speaker 1: had it on we were sleeping. I'm not sure what 321 00:17:56,320 --> 00:17:58,480 Speaker 1: we were doing. We had it only two buildings, were 322 00:17:58,480 --> 00:18:02,119 Speaker 1: going backwards. And then twenty fourteen, which is when in 323 00:18:03,600 --> 00:18:05,080 Speaker 1: which a lot of you came, We went from nine 324 00:18:05,119 --> 00:18:08,040 Speaker 1: buildings to twenty three. Were now at thirty four buildings, 325 00:18:08,080 --> 00:18:12,680 Speaker 1: which means we've already added four new markets with Berkeley, Amsterdam, Chicago, 326 00:18:12,760 --> 00:18:15,800 Speaker 1: and Austin, Texas. The numbers were doubling or tripling year 327 00:18:15,840 --> 00:18:18,400 Speaker 1: by year. Adam told them that what they were doing 328 00:18:18,520 --> 00:18:24,680 Speaker 1: was completely unprecedented. Our physical growth in yrse teen, assuming 329 00:18:24,680 --> 00:18:26,680 Speaker 1: we're just similar to what we're planning or more. It 330 00:18:26,760 --> 00:18:29,040 Speaker 1: is going to be the fastest physical growth in the 331 00:18:29,119 --> 00:18:31,399 Speaker 1: history of the world, at least as far as I 332 00:18:31,400 --> 00:18:33,200 Speaker 1: can tell, at least for the past. I'm not sure 333 00:18:33,200 --> 00:18:35,960 Speaker 1: about Roman times, and some of those times there might 334 00:18:35,960 --> 00:18:40,320 Speaker 1: have been some very high growth companies there. Okay, so 335 00:18:40,400 --> 00:18:43,320 Speaker 1: here's my read on what he's saying. I think Adam 336 00:18:43,480 --> 00:18:47,160 Speaker 1: is only half kidding here. He's obviously joking about there 337 00:18:47,160 --> 00:18:50,160 Speaker 1: being startups during Roman times, but he's not joking when 338 00:18:50,160 --> 00:18:52,399 Speaker 1: he says that we Work is growing like no one else. 339 00:18:52,760 --> 00:18:55,240 Speaker 1: They were opening up buildings all over the world, even 340 00:18:55,280 --> 00:18:58,480 Speaker 1: though they've only been around for a few years. So 341 00:18:58,600 --> 00:19:02,480 Speaker 1: this video was taped in mid right before I started 342 00:19:02,480 --> 00:19:05,080 Speaker 1: covering we Work. At the time, they were seen as 343 00:19:05,119 --> 00:19:08,520 Speaker 1: this hot, rising startup. The company was valued at ten 344 00:19:08,560 --> 00:19:11,960 Speaker 1: billion dollars. Most of the media coverage marveled at how 345 00:19:12,000 --> 00:19:14,840 Speaker 1: fast they were growing, how much money they'd raised, and 346 00:19:14,880 --> 00:19:17,359 Speaker 1: they asked a few questions about whether it was really 347 00:19:17,400 --> 00:19:19,400 Speaker 1: all it was hyped up to be, but there wasn't 348 00:19:19,480 --> 00:19:23,320 Speaker 1: much criticism out there. When I started watching these videos 349 00:19:23,320 --> 00:19:26,000 Speaker 1: of all hands meetings, it was the first time that 350 00:19:26,040 --> 00:19:28,640 Speaker 1: I got to hear what Adam was like inside the office, 351 00:19:29,119 --> 00:19:31,320 Speaker 1: what he told his employees, and not what he told 352 00:19:31,359 --> 00:19:34,600 Speaker 1: reporters or the public, And it was really different from 353 00:19:34,600 --> 00:19:37,440 Speaker 1: the shiny, polished narrative that we were put out there. 354 00:19:38,040 --> 00:19:40,560 Speaker 1: In the tape, you hear Adam say things that are 355 00:19:40,600 --> 00:19:44,560 Speaker 1: pretty revealing. Here he is addressing new hires gathered at 356 00:19:44,560 --> 00:19:47,040 Speaker 1: the meeting. You guys are about to find out. We're 357 00:19:47,040 --> 00:19:49,639 Speaker 1: really nice to give him the first thirty days. The 358 00:19:49,800 --> 00:19:52,200 Speaker 1: second thirty days were made by day six. You on, 359 00:19:52,320 --> 00:19:56,359 Speaker 1: you'll know our truth. You'll know our truth. What strikes 360 00:19:56,400 --> 00:19:59,560 Speaker 1: me here is how Adam is saying something weirdly ominous 361 00:19:59,600 --> 00:20:02,520 Speaker 1: to his employees. It's kind of joking, but it's also 362 00:20:02,600 --> 00:20:05,560 Speaker 1: clearly not a joke. I feel like I should take 363 00:20:05,560 --> 00:20:07,919 Speaker 1: a moment here and tell you how I got these tapes. 364 00:20:08,520 --> 00:20:11,000 Speaker 1: They were given to me by an employee. She was 365 00:20:11,080 --> 00:20:14,280 Speaker 1: upset about how we Work was operating, and after she 366 00:20:14,359 --> 00:20:17,320 Speaker 1: shared the recordings, we Work turned around and sued her. 367 00:20:18,200 --> 00:20:20,840 Speaker 1: It's an interesting story. You'll hear it all in full 368 00:20:21,000 --> 00:20:23,800 Speaker 1: later in the series. One of the most fun things 369 00:20:23,880 --> 00:20:25,960 Speaker 1: is when you see a new employee and you know 370 00:20:26,080 --> 00:20:29,640 Speaker 1: two things. One they have no clue what they got 371 00:20:29,640 --> 00:20:33,040 Speaker 1: themselves into. That's a fact. Whatever they think they know, 372 00:20:33,080 --> 00:20:36,160 Speaker 1: whatever their friends told them, whatever you told them, they 373 00:20:36,160 --> 00:20:38,120 Speaker 1: don't know. And don't matter how much you're gonna tell them. 374 00:20:38,280 --> 00:20:40,720 Speaker 1: They won't know. They won't know until they did the 375 00:20:40,840 --> 00:20:43,160 Speaker 1: first all night, or they won't know until they did 376 00:20:43,200 --> 00:20:45,520 Speaker 1: the first summit. They won't know until they did the 377 00:20:45,600 --> 00:20:48,240 Speaker 1: first summer camp. But until you get to experience all 378 00:20:48,280 --> 00:20:52,560 Speaker 1: of that, you don't know. I started talking to a 379 00:20:52,600 --> 00:20:55,800 Speaker 1: lot of current and former we Work employees. I wanted 380 00:20:55,840 --> 00:20:58,800 Speaker 1: to understand the company better, and many of them told 381 00:20:58,800 --> 00:21:02,720 Speaker 1: me about that withline that Adam was just describing, Their 382 00:21:02,840 --> 00:21:05,840 Speaker 1: first few months on the job were a shock. Things 383 00:21:05,840 --> 00:21:08,080 Speaker 1: were much more frantic than it seemed from the outside. 384 00:21:08,520 --> 00:21:12,320 Speaker 1: This incredible growth, growth that Adam compared to Roman times, 385 00:21:12,800 --> 00:21:17,000 Speaker 1: meant that internally it was chaos. Here's Teddy again. We 386 00:21:17,040 --> 00:21:20,080 Speaker 1: opened up a building in New York down in Soho. Um. 387 00:21:20,680 --> 00:21:22,440 Speaker 1: We didn't have a functioning bathroom on the first day. 388 00:21:22,840 --> 00:21:24,480 Speaker 1: Um so I had to go down the block to 389 00:21:24,520 --> 00:21:26,480 Speaker 1: a local coffee shop and buy out all of their 390 00:21:26,480 --> 00:21:28,879 Speaker 1: pastries and told them that if someone came in with 391 00:21:28,920 --> 00:21:31,520 Speaker 1: a wee Work keycard that they would be able to 392 00:21:31,600 --> 00:21:34,480 Speaker 1: use the bathroom. There's the saying you you know you've 393 00:21:34,480 --> 00:21:38,240 Speaker 1: got three options fast, cheap, and right, but you only 394 00:21:38,240 --> 00:21:40,800 Speaker 1: get to pick two. What are you gonna pick? You know, 395 00:21:40,800 --> 00:21:42,679 Speaker 1: when we work, it was always fast and cheap. I 396 00:21:42,720 --> 00:21:45,520 Speaker 1: know it sounds crazy to open an office with no bathroom, 397 00:21:45,880 --> 00:21:48,800 Speaker 1: but there were so many more stories like this. When 398 00:21:48,800 --> 00:21:50,560 Speaker 1: we opened up our first building in DC, we didn't 399 00:21:50,560 --> 00:21:53,000 Speaker 1: have coffee machines. So on Super Bowl Sunday we were 400 00:21:53,000 --> 00:21:55,439 Speaker 1: opening up the day after Super Bowl Sunday, I had 401 00:21:55,480 --> 00:21:58,000 Speaker 1: to go to Costco and bought four Mr Coffee, you know, 402 00:21:58,040 --> 00:22:00,520 Speaker 1: personal coffee machines, and we were on and four at 403 00:22:00,520 --> 00:22:03,159 Speaker 1: a time, blowing the breaker all morning, having to reset 404 00:22:03,160 --> 00:22:06,280 Speaker 1: the electricity for it towards it um, but that's what 405 00:22:06,359 --> 00:22:08,400 Speaker 1: you had to do. Then there was a time when 406 00:22:08,400 --> 00:22:10,720 Speaker 1: we work was about to open a building in Berkeley. 407 00:22:10,800 --> 00:22:13,960 Speaker 1: There was one wrinkle. They had installed a front door 408 00:22:14,040 --> 00:22:18,080 Speaker 1: that wasn't accessible to people with disabilities. So, uh, we 409 00:22:18,119 --> 00:22:20,760 Speaker 1: evaluated and looked at it, and we determined that it 410 00:22:20,800 --> 00:22:23,199 Speaker 1: was better to have no door than to have a 411 00:22:23,200 --> 00:22:26,199 Speaker 1: non compliant door. So for about three days after we 412 00:22:26,240 --> 00:22:29,000 Speaker 1: opened up that location in Berkeley in January of two 413 00:22:29,000 --> 00:22:32,679 Speaker 1: thousand and fifteen we had a literally no door on 414 00:22:32,800 --> 00:22:36,840 Speaker 1: the building with cold East Bay air blowing through, and 415 00:22:36,960 --> 00:22:39,399 Speaker 1: I had to hire seven security until we could get 416 00:22:39,440 --> 00:22:43,760 Speaker 1: the door fixed. These screw ups made we were customers unhappy, 417 00:22:43,800 --> 00:22:45,600 Speaker 1: but Teddy said that the way to fix it was 418 00:22:45,640 --> 00:22:48,040 Speaker 1: to offer them free brunch, a nice happy hour, or 419 00:22:48,040 --> 00:22:51,520 Speaker 1: a discount on rent. Another community manager, Carl, had to 420 00:22:51,520 --> 00:22:54,600 Speaker 1: deal with this too. You heard from him earlier. Building 421 00:22:54,640 --> 00:22:57,560 Speaker 1: launches were the most stressful because paint was still drying 422 00:22:57,640 --> 00:23:00,320 Speaker 1: when people moved in, and it was that under shut. 423 00:23:00,840 --> 00:23:03,800 Speaker 1: In Miami Beach, one of the offices failed inspection on 424 00:23:03,840 --> 00:23:06,879 Speaker 1: the morning it was supposed to open, leaving members ready 425 00:23:06,920 --> 00:23:09,920 Speaker 1: to move in stranded. And you have people who paid 426 00:23:09,960 --> 00:23:12,640 Speaker 1: money showing up with boxes of things to move into 427 00:23:12,640 --> 00:23:14,520 Speaker 1: their new office that were told they cannot go into 428 00:23:14,520 --> 00:23:17,119 Speaker 1: that building. So we work, over the course of forty 429 00:23:17,160 --> 00:23:19,600 Speaker 1: eight hours, had to build a makeshift office across the 430 00:23:19,640 --> 00:23:23,239 Speaker 1: street at this empty like commercial building. Paint it, make 431 00:23:23,280 --> 00:23:25,560 Speaker 1: it look cool, give it a we worked vibe, get 432 00:23:25,560 --> 00:23:27,359 Speaker 1: internet set up, get all these things set up, and 433 00:23:27,359 --> 00:23:29,560 Speaker 1: they pulled it off. It blows my mind like they 434 00:23:29,600 --> 00:23:32,320 Speaker 1: totally pulled it off. In d C where Carl worked, 435 00:23:32,359 --> 00:23:34,280 Speaker 1: we Worke didn't have a liquor license for the free 436 00:23:34,280 --> 00:23:36,840 Speaker 1: beer it was giving out. Carl tried to fix it. 437 00:23:37,200 --> 00:23:38,840 Speaker 1: I had no idea what license to apply for. Am 438 00:23:38,840 --> 00:23:41,480 Speaker 1: I a tavern? The hell's a tavern. Keep in mind, 439 00:23:41,560 --> 00:23:44,240 Speaker 1: Carl is twenty six trying to figure out permits to 440 00:23:44,280 --> 00:23:48,159 Speaker 1: satisfy some arcane municipal law and he doesn't quite nail it. 441 00:23:48,720 --> 00:23:51,159 Speaker 1: Carl is convinced that someone tipped off the cops. So 442 00:23:51,280 --> 00:23:53,959 Speaker 1: I remember we actually had a rate happened at all 443 00:23:53,960 --> 00:23:56,320 Speaker 1: of our offices where it was almost like swat style 444 00:23:56,359 --> 00:23:59,159 Speaker 1: where all these cops are pouring in, like where's the alcohol? 445 00:23:59,160 --> 00:24:01,600 Speaker 1: Where is the alcohol? And like that keg over there. 446 00:24:01,680 --> 00:24:04,320 Speaker 1: It's like in this beautiful marble center thing that's right 447 00:24:04,320 --> 00:24:06,399 Speaker 1: over there, and they were like where's the other And 448 00:24:06,480 --> 00:24:08,960 Speaker 1: it was you know, I had my community managers calling 449 00:24:08,960 --> 00:24:11,240 Speaker 1: me freaking out, like dude, cops are here to Carl, 450 00:24:11,320 --> 00:24:14,040 Speaker 1: like what's going on. Carl was a city level manager 451 00:24:14,080 --> 00:24:17,320 Speaker 1: for we Works Community Team, a department name that sounds 452 00:24:17,400 --> 00:24:20,520 Speaker 1: kind of vague, but that's also pretty common at big startups. 453 00:24:21,240 --> 00:24:24,399 Speaker 1: Community workers are on the front lines. They manage WE 454 00:24:24,480 --> 00:24:27,840 Speaker 1: Worked buildings. They're the ones who dealt with disasters. They 455 00:24:27,840 --> 00:24:29,680 Speaker 1: were the first people you saw when you walked into 456 00:24:29,680 --> 00:24:32,360 Speaker 1: a We were some sat at the front desk. They 457 00:24:32,359 --> 00:24:35,879 Speaker 1: gave tours and sold new memberships, tapped the kegs, fixed 458 00:24:35,920 --> 00:24:39,440 Speaker 1: the printer, handled anything that came up. Really. They also 459 00:24:39,520 --> 00:24:43,480 Speaker 1: hosted events in the buildings that often meant really long hours. 460 00:24:43,920 --> 00:24:46,320 Speaker 1: They were usually the first ones into the building and 461 00:24:46,359 --> 00:24:49,120 Speaker 1: the last ones out, so then you'd have to host 462 00:24:49,160 --> 00:24:51,880 Speaker 1: a party or host an event, host the lecture, host 463 00:24:51,920 --> 00:24:54,639 Speaker 1: something in the space. So you know, before you know it, 464 00:24:54,920 --> 00:24:57,359 Speaker 1: you got up at seven am, got to worked by eight, 465 00:24:57,480 --> 00:24:59,640 Speaker 1: and then you're leaving work at ten just to start 466 00:24:59,640 --> 00:25:01,320 Speaker 1: it all her again. And you would do that. We 467 00:25:01,359 --> 00:25:04,800 Speaker 1: would do that for weeks, weeks, months, um. More often 468 00:25:04,800 --> 00:25:07,199 Speaker 1: than not. We were just dealing with problems and members 469 00:25:07,240 --> 00:25:09,720 Speaker 1: coming up to us and complaining. Carl said the job 470 00:25:09,760 --> 00:25:13,080 Speaker 1: was tough, especially for his younger employees who got blamed 471 00:25:13,080 --> 00:25:15,960 Speaker 1: for the work frustrations of their customers, like it is 472 00:25:15,960 --> 00:25:19,240 Speaker 1: somehow your problem, you did something wrong. The temperature in 473 00:25:19,240 --> 00:25:21,719 Speaker 1: this office is why they'd enclose that deal. You know, 474 00:25:21,880 --> 00:25:25,399 Speaker 1: it's it's hard to tell a twenty three or four 475 00:25:25,480 --> 00:25:28,440 Speaker 1: year old that this guy who's spitting in your face, 476 00:25:28,800 --> 00:25:31,840 Speaker 1: so angry about a bad print job, and it is 477 00:25:31,880 --> 00:25:34,199 Speaker 1: not your problem and not your fault. We said. The 478 00:25:34,200 --> 00:25:36,919 Speaker 1: community employees were young, but so were a lot of 479 00:25:36,920 --> 00:25:40,359 Speaker 1: the customers, or at least they acted like it. Carl 480 00:25:40,400 --> 00:25:45,000 Speaker 1: really learned a lot about humanity on this job. Yeah, 481 00:25:45,240 --> 00:25:47,239 Speaker 1: oh man, you know the crazy parts that have these 482 00:25:47,240 --> 00:25:50,040 Speaker 1: office birthdays and just leave the cake out for like days, 483 00:25:50,280 --> 00:25:53,360 Speaker 1: just like cake, an open air cake. So yeah, mice everywhere. 484 00:25:53,720 --> 00:25:55,040 Speaker 1: It was like it was the thing. It was like, 485 00:25:55,680 --> 00:25:57,520 Speaker 1: I've gotten to the point where I can tell you 486 00:25:57,640 --> 00:25:59,720 Speaker 1: the perfect bait to use to get mice. I can 487 00:25:59,720 --> 00:26:01,879 Speaker 1: tell you the right traps to use. I can tell 488 00:26:01,920 --> 00:26:03,760 Speaker 1: you the right corners to use, what time of night 489 00:26:03,800 --> 00:26:07,119 Speaker 1: they usually like, move around. Um, it's crazy. Keep in 490 00:26:07,160 --> 00:26:09,600 Speaker 1: mind a lot of these employees are recent college grounds, 491 00:26:09,680 --> 00:26:11,760 Speaker 1: some of whom are in their first jobs, and they've 492 00:26:11,760 --> 00:26:15,080 Speaker 1: been hired by this very exciting startup and they're learning 493 00:26:15,320 --> 00:26:18,160 Speaker 1: how to trap mice. The first go around, we use 494 00:26:18,440 --> 00:26:23,200 Speaker 1: glue traps. Horrific. Don't ever use those. They're all these 495 00:26:23,200 --> 00:26:25,160 Speaker 1: screaming mice. So we're trying to get off the trap. 496 00:26:25,200 --> 00:26:27,000 Speaker 1: You couldn't take them off that ripping their skin off 497 00:26:27,119 --> 00:26:31,080 Speaker 1: in every every woman in the building, They're all like screw, 498 00:26:31,160 --> 00:26:33,239 Speaker 1: Like I had to do something because that's to put 499 00:26:33,280 --> 00:26:36,000 Speaker 1: them out their miseries. I basically it was either I 500 00:26:36,080 --> 00:26:38,119 Speaker 1: killed them myself right threw them in the trash can. 501 00:26:38,200 --> 00:26:41,240 Speaker 1: But it was like sticky pads of mice screaming, which 502 00:26:41,359 --> 00:26:47,240 Speaker 1: is horrifying. Members also brought in their dogs. Part of 503 00:26:47,320 --> 00:26:48,719 Speaker 1: the beauty of we work was you can bring your 504 00:26:48,720 --> 00:26:51,719 Speaker 1: dog to work, so adorable and so amazing. But one 505 00:26:51,760 --> 00:26:54,480 Speaker 1: of our buildings, that Wonderbread, Uh, they let too many 506 00:26:54,480 --> 00:26:56,280 Speaker 1: of the dogs off leash and they became like their 507 00:26:56,320 --> 00:27:00,960 Speaker 1: own pack of roving roving like wool. They just ran 508 00:27:01,000 --> 00:27:03,560 Speaker 1: around and it was like one dog was like the 509 00:27:03,600 --> 00:27:06,119 Speaker 1: alpha and all the dogs just like follow. It was 510 00:27:06,119 --> 00:27:08,840 Speaker 1: just so crazy, and we got so many complaints. Everyone's like, 511 00:27:09,160 --> 00:27:10,760 Speaker 1: what the hell is going on the hallways because you 512 00:27:10,840 --> 00:27:13,600 Speaker 1: all you heard was like one dog would start sprinting 513 00:27:13,600 --> 00:27:15,760 Speaker 1: in like a whole pack of dogs that would follow. 514 00:27:16,280 --> 00:27:20,920 Speaker 1: Sometimes their job included dealing with party leftovers. We had 515 00:27:20,920 --> 00:27:23,840 Speaker 1: so many parties where you know, I think in the 516 00:27:24,000 --> 00:27:27,399 Speaker 1: entire time, three times I found like a condom rapper 517 00:27:27,560 --> 00:27:29,520 Speaker 1: or econom in a gross place, like one in the 518 00:27:29,600 --> 00:27:32,359 Speaker 1: phone booth, you know, one in the meditation room. So 519 00:27:32,400 --> 00:27:34,159 Speaker 1: that's the reason the meditation was at a door, just 520 00:27:34,160 --> 00:27:37,600 Speaker 1: gotta I can't trust people behind closed doors. So yeah, 521 00:27:37,800 --> 00:27:42,080 Speaker 1: disgusting people are awful, awful, awful. So what did Carl 522 00:27:42,160 --> 00:27:44,840 Speaker 1: do the first time he saw a used condom? The 523 00:27:44,880 --> 00:27:48,240 Speaker 1: first time? I gagged? Well, and then I took a 524 00:27:48,240 --> 00:27:50,320 Speaker 1: photo and I sected it to my team and like 525 00:27:50,760 --> 00:27:53,760 Speaker 1: with the words WTF. And then it turns his whole 526 00:27:53,840 --> 00:27:55,760 Speaker 1: chat like, oh my god, what did you find out? 527 00:27:56,720 --> 00:27:58,720 Speaker 1: And then it's just a guessing game and then of 528 00:27:58,720 --> 00:28:00,840 Speaker 1: who it was, and then me going through recordings from 529 00:28:00,840 --> 00:28:02,359 Speaker 1: I figure out who was to have a super awkward 530 00:28:02,440 --> 00:28:05,320 Speaker 1: chat with a member. Sadly, Carl couldn't figure out the 531 00:28:05,320 --> 00:28:07,960 Speaker 1: condom culprit and he didn't want to leave his staff 532 00:28:08,000 --> 00:28:10,160 Speaker 1: to deal with it, so he did what he thought 533 00:28:10,200 --> 00:28:12,639 Speaker 1: a leader should do. So I put on a glove, 534 00:28:13,080 --> 00:28:16,080 Speaker 1: looked away, picked it up, through it in trash. Disgusting, 535 00:28:16,640 --> 00:28:20,120 Speaker 1: gross gross gross gross. And it wasn't just condoms. There 536 00:28:20,200 --> 00:28:24,320 Speaker 1: was one other unfortunate party favor Oh yeah, parties. Yeah, 537 00:28:24,359 --> 00:28:27,320 Speaker 1: people vomited and with the weirdest places. Um, some guys 538 00:28:27,359 --> 00:28:29,760 Speaker 1: just can't women got women and women can't hold their 539 00:28:29,760 --> 00:28:32,320 Speaker 1: booze and the you know, the good thing at a 540 00:28:32,320 --> 00:28:34,720 Speaker 1: phone booth and they turned dark when you close the door, 541 00:28:34,800 --> 00:28:36,560 Speaker 1: so you open it, you vomit, You close it, and 542 00:28:36,560 --> 00:28:39,480 Speaker 1: nobody will find it until they open it again. So 543 00:28:39,480 --> 00:28:42,480 Speaker 1: so yes, if your CEO is bragging about serving ninety 544 00:28:42,960 --> 00:28:45,560 Speaker 1: beers a month, you might witness some of the side 545 00:28:45,560 --> 00:28:49,360 Speaker 1: effects of heavy drinking. But that's what's funny about Carl. 546 00:28:49,880 --> 00:28:52,560 Speaker 1: Even though he had to deal with the disgusting aftermath, 547 00:28:52,880 --> 00:28:55,160 Speaker 1: he still thinks that beer is part of what made 548 00:28:55,200 --> 00:28:58,080 Speaker 1: we work special and attractive. I mean, obviously a lot 549 00:28:58,080 --> 00:28:59,840 Speaker 1: of these things wouldn't have happened about the parties, but 550 00:28:59,880 --> 00:29:03,160 Speaker 1: the parties kind of kept the momentum of the space going. 551 00:29:04,000 --> 00:29:06,240 Speaker 1: I see a lot of new coworking spaces now they're like, 552 00:29:06,320 --> 00:29:09,800 Speaker 1: this is coworking space for adults and blah blah blah, 553 00:29:09,800 --> 00:29:11,680 Speaker 1: but they're just not as fun. Say what you will 554 00:29:11,680 --> 00:29:13,880 Speaker 1: about with a drinking culture, which definitely got out of 555 00:29:13,880 --> 00:29:17,760 Speaker 1: hand many times. Um, it was the only place doing it, 556 00:29:18,000 --> 00:29:20,480 Speaker 1: and it was wild and it was fun and it 557 00:29:20,680 --> 00:29:24,160 Speaker 1: kept people talking. So Carl defended a lot of aspects 558 00:29:24,160 --> 00:29:27,160 Speaker 1: of the job, even though it sometimes made him miserable. 559 00:29:27,880 --> 00:29:31,600 Speaker 1: Everybody at we work, I don't care what position they were, 560 00:29:31,800 --> 00:29:34,320 Speaker 1: had a moment where they felt like crying. So many 561 00:29:34,360 --> 00:29:36,880 Speaker 1: of Carl's employees cried at work that he developed a 562 00:29:36,920 --> 00:29:40,640 Speaker 1: standard line of advice for them. So rather than lose 563 00:29:40,760 --> 00:29:43,680 Speaker 1: employees or have them completely freak out in front of 564 00:29:43,680 --> 00:29:46,040 Speaker 1: a member, I always tell employees, hey, listen, like, if 565 00:29:46,040 --> 00:29:49,760 Speaker 1: you ever have that moment, grab somebody who will cover 566 00:29:49,840 --> 00:29:51,600 Speaker 1: the desk for you, and just go take as long 567 00:29:51,600 --> 00:29:53,600 Speaker 1: of a walk as you need. And he had advice 568 00:29:53,640 --> 00:29:56,320 Speaker 1: on where to cry too, Well, if you're building was 569 00:29:56,520 --> 00:29:58,560 Speaker 1: sold out, you can find an empty office, it's pretty good. 570 00:29:58,680 --> 00:30:02,440 Speaker 1: Usually supply is were okay. Where wherever you can. Just 571 00:30:02,480 --> 00:30:04,680 Speaker 1: don't do it for the members. And if you need 572 00:30:04,720 --> 00:30:06,120 Speaker 1: talk to someone, talk to somebody in your team, or 573 00:30:06,120 --> 00:30:08,040 Speaker 1: talk to me. That was the rule. And during this 574 00:30:08,080 --> 00:30:11,840 Speaker 1: whole period, actually I remember a lot of former employees 575 00:30:11,880 --> 00:30:14,720 Speaker 1: talking to me about this feeling of chaos. How we 576 00:30:14,800 --> 00:30:17,520 Speaker 1: work seemed from the outside like this rocket ship destined 577 00:30:17,520 --> 00:30:20,000 Speaker 1: for the moon, but on the inside it was growing 578 00:30:20,080 --> 00:30:22,680 Speaker 1: so quickly that you couldn't keep up. It was basically 579 00:30:22,720 --> 00:30:26,600 Speaker 1: just smile through the tears. Actually, this was one of 580 00:30:26,640 --> 00:30:30,560 Speaker 1: my first big breakthroughs in reporting on We Work again. 581 00:30:30,640 --> 00:30:32,920 Speaker 1: At the time, almost all the press coverage of we 582 00:30:33,000 --> 00:30:36,360 Speaker 1: Work was so positive, but I kept finding employees who 583 00:30:36,360 --> 00:30:41,360 Speaker 1: were burnt out and frustrated and also feeling betrayed. They've 584 00:30:41,400 --> 00:30:44,600 Speaker 1: been told so many positive things by their employer about 585 00:30:44,640 --> 00:30:47,720 Speaker 1: doing what you love, only to find that working there 586 00:30:48,000 --> 00:30:51,719 Speaker 1: was a disheartening experience. As I talked to them, I 587 00:30:51,800 --> 00:30:54,600 Speaker 1: kept learning more and more about how they felt wronged 588 00:30:54,680 --> 00:30:57,400 Speaker 1: and mistreated by We Work. It was one of the 589 00:30:57,400 --> 00:31:00,480 Speaker 1: first hints to me that there was something off. I 590 00:31:00,560 --> 00:31:03,320 Speaker 1: kept thinking that it can't be this successful of a 591 00:31:03,400 --> 00:31:10,200 Speaker 1: company if its employees are so unhappy. Right, that's next 592 00:31:10,240 --> 00:31:16,280 Speaker 1: time on Foundering. Foundering is hosted by me Ellen Hewitt. 593 00:31:16,800 --> 00:31:19,840 Speaker 1: Sean When is our executive producer. My Aquava is our 594 00:31:19,840 --> 00:31:24,280 Speaker 1: associate producer. Raimondo mixed the show today. Magnus Hendrickson helped 595 00:31:24,360 --> 00:31:28,080 Speaker 1: us with recordings. Mark Million and Vandermay and Alistair Barr 596 00:31:28,200 --> 00:31:31,240 Speaker 1: are our story editors. Francesco Levi is the head of 597 00:31:31,280 --> 00:31:34,360 Speaker 1: Bloomberg Podcasts. Be sure to subscribe and if you like 598 00:31:34,440 --> 00:31:38,040 Speaker 1: our show, leave a review. Most importantly, tell your friends 599 00:31:38,560 --> 00:31:39,320 Speaker 1: see you next time.