Knotel slashes its workforce again

Flex office company laid off 20 workers, leaving headcount at 250

National /
Oct.October 30, 2020 12:30 PM
Knotel CEO Amol Sarva (iStock)

Knotel CEO Amol Sarva (iStock)

Flex office provider Knotel is tightening its belt even more as Manhattan workers balk at the idea of returning to the workplaces.

On a conference call Thursday afternoon, the company announced it has laid off about 20 people, bringing its total headcount to 250, Business Insider reported. Amol Sarva, Knotel’s CEO, said he hoped the company would achieve profitability by the end of the first quarter of 2021.

During the call, Sarva said that Knotel would continue to trim its footprint, and that vacancies have plagued the company. Sarva said he had hoped for more of an economic upturn by now, but it hasn’t materialized.

“We have no crystal balls, but the scenarios that we considered didn’t pan out. I own that,” Sarva wrote in an email reviewed by Business Insider.

Knotel’s troubles — including late payments to contractors, vacancies and an uncertain path to profitability — predated the pandemic. But the shift to remote work and employees’ reluctance to return to the office has made the company’s trajectory even more uncertain.

After Knotel allegedly skipped paying rent at numerous locations, some of its landlords have filed lawsuits. In one case, GFP Real Estate alleged the company owed more than $740,000 in rent at 40 Exchange Place in Lower Manhattan, and as of July, had not paid rent since April.

Knotel reportedly wants to raise $100 million in new funding at a price that would slash its most recent August 2019 valuation of $1.6 billion in half. The company has also put about 375,000 square feet of space across 10 Manhattan locations up for sublease.

[BI] — Georgia Kromrei


Related Articles

arrow_forward_ios
Jorge Perez and Jon Paul Perez with Terminal Island (Getty, iStock)

Related gets height increase needed for Terminal Island office project in Miami Beach

Related gets height increase needed for Terminal Island office project in Miami Beach
Rendering of the Dorsey with Alex Karakhanian, Jon Paul Perez and Tricera’s Scott Sherman and Ben Mandel (iStock)

Related scores $88M construction loan for Dorsey project in Wynwood

Related scores $88M construction loan for Dorsey project in Wynwood
Elliott Management's Paul Singer, Microsoft CEO Satya Nadella and Citadel's Ken Griffin (Getty)

Microsoft, Citadel and Elliott Management among firms expanding in South Florida

Microsoft, Citadel and Elliott Management among firms expanding in South Florida
Prologis CEO Hamid Moghadam, Amerant CEO Millar Wilson and 12496 Northwest 25th Street in Sweetwater (Google Maps; Prologis; Amerant)

Prologis pays $12M for Sweetwater office building

Prologis pays $12M for Sweetwater office building
429 Center Island Drive and Vladimir Spector (Lifestyle Production Group, Linkedin)

Golden Beach mansion of late South Florida developer who died of Covid-19 trades for $8M

Golden Beach mansion of late South Florida developer who died of Covid-19 trades for $8M
6262 Sunset Drive in South Miami with USAA CEO Len O’Donnell and Ardent Companies CEO Matt Shulman (Photos via Google Maps; Ardent; USAA)

Ardent buys South Miami medical office building for $37M

Ardent buys South Miami medical office building for $37M
86800 Overseas Highway, Islamorada (Google Maps, iStock)

Islamorada closes administrative building due to Covid-19

Islamorada closes administrative building due to Covid-19
Phillips Point office towers with Related's Stephen Ross (JLL, Getty)

Related Cos. to pay $282M for West Palm Beach office towers

Related Cos. to pay $282M for West Palm Beach office towers
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...