How Coworking Spaces Are Thriving in a Layoff Economy
In the past few years, India has seen a surge in economic disruptions—from global downturns and mass tech layoffs to shifting business models. The most vulnerable segment during these times has been the workforce. Startups have downsized, IT giants have trimmed teams, and even unicorns have restructured. Yet amidst this storm, one industry has quietly flourished: coworking spaces.
Though they started as a shared office solution, flexible workspaces have changed how we work in India, particularly amidst uncertainty. Flexible workspaces are not just a trend for startups; they are quickly becoming necessary in a layoff economy.
Layoffs and the Rise of the Gig Economy in India
India experienced an estimated 150,000 layoffs in 2022–23, with major layoffs in all sectors, particularly in the tech, edtech, and fintech sectors. Startups like Byju’s, Unacademy, and Paytm reduced their teams rapidly as they increased profits. Global firms that have businesses established in India, like Google, Meta, and Amazon, also laid off employees across their verticals and/or product teams.
However, with job losses comes a significant shift: many laid-off professionals are turning to freelancing, consulting, and entrepreneurship. According to the Boston Consulting Group, nearly 34% of Indian professionals are considering gig or freelance work in 2025. This pivot away from traditional employment has boosted the demand for affordable, flexible, well-equipped workspaces. This movement from traditional full-time work will increase demand for affordable, flexible, and fully equipped workspaces.
India’s Coworking Boom: The Numbers Tell the Story
Shared office spaces in India are thriving, not simply surviving. Here’s what the statistics say: According to a report published by Knight Frank India, the coworking segment accounted for 23% of overall office leasing in 2023, representing an increase from only 14% in 2019. Coworking players leased a record 12.5 million sq. ft. of office space in 2024, a year-on-year increase of 44% (Economic Times). The Indian coworking market is valued at USD 761.9 million in 2023 and is expected to reach USD 2.84 billion by 2030 at a CAGR of 20.6% (NextMSC).
India’s major coworking hubs—Bengaluru, Hyderabad, Delhi NCR, Mumbai, Pune, and Chennai—continue to witness rising occupancy and expansion plans from players like WeWork India, Awfis, Smartworks, 91springboard, and Innov8.
Why Coworking Thrives in a Layoff Economy
- Flexibility and Affordability
Nobody wants to sign a long-term lease during tricky times in the job market. Coworking spaces have a monthly lease, open meeting rooms, and plug-and-play options. For bootstrapped startups, individual consultants, and small teams, working out of a space that protects them from large real estate commitments makes sense.
- The Rise of “Solopreneurs” and Consultants
The layoffs have birthed a new wave of freelance consultants, content creators, design studios, legal advisors, and fintech micro-startups. These professionals need not just internet and chairs but credibility, infrastructure, and a collaborative environment. Shared office spaces provide exactly that. A survey by Awfis in 2024 revealed that 67% of gig workers in Tier 1 cities prefer coworking spaces over working from home.
- Productivity Over Isolation
Working from home can be isolating, especially for someone who may have been accustomed to the camaraderie of the office. The shared office spaces offer a social yet professional experience to have the best of both worlds. For many professionals who were displaced from their jobs and experimented with working from home, coworking spaces present a way to get grounded back into structure, focus, and human interaction. Sprint’s coworking spaces make this easier by creating a friendly, focused environment where people can get work done without feeling alone. It’s a place to stay productive and feel part of a community.
Emerging Trends Fueling Growth
- Core + Flex Model Adoption
Companies, especially mid-sized ones, are opting for a Core + Flex model: a small core office for key employees and coworking spaces for satellite teams and freelancers. This reduces overheads and allows them to scale fast during project cycles.
- Tier 2 City Expansion
Players like Awfis, iKeva, and MyHQ are expanding into Tier 2 and Tier 3 cities such as Jaipur, Kochi, Indore, and Lucknow. As talent decentralizes, demand for quality workspaces beyond metros is exploding.
- Amenities and Wellness Focus
Modern shared office spaces are investing in more than just desks. Facilities like podcast studios, nap zones, yoga rooms, on-demand tech support, and gourmet cafes are becoming standard. This enhances productivity and draws in a diverse set of users.
Challenges That Still Exist
Despite the positives, the coworking segment is not without hurdles.
- Saturation in Metro Cities: Overcrowding and fierce competition mean operators must constantly innovate.
- Regulatory Compliance: Lack of clarity in taxation and zoning laws for commercial usage in certain cities creates hurdles.
- Profitability Pressure: While leasing grows, achieving unit-level profitability in smaller cities remains difficult.
However, most operators tackle these challenges with multi-location passes, corporate tie-ups, and tiered pricing models. Sprint India, too, is tackling these complexities thoughtfully by adapting to market dynamics, expanding steadily, and building a scalable coworking network across the country.
Conclusion: A Space for the Future
The layoff economy has shaken the traditional employment and office culture. But it has also cleared the way for a resilient, adaptive, and inclusive work model, and coworking spaces are at its core. They’re not just filling the gaps but redefining the future of work in India. By supporting freelancers, enabling startups, empowering women professionals, and easing corporate overheads, shared office spaces are turning disruption into an opportunity.
As we move toward a gig-first, hybrid-focused, and decentralized economy, coworking spaces will no longer be an alternative. They will be the default. Sprint India understands this shift and delivers everything today’s professionals need to stay ahead.
Resources:
https://economictimes.indiatimes.com/industry/services/property-/-cstruction/coworking-operators-rent-record-125-lakh-sq-ft-office-space-in-2024-to-meet-demand-report/articleshow/116835259.cms?from=mdr
https://www.nextmsc.com/report/india-co-working-space-market