In my last role (now 5 years ago) for a major bank, the team was 100 strong but they only had 30 desks of ur. It was first come first served, you couldn't reserve a desk. If you turned up later and missed a desk then you'd have to use one of the conference pods or wherever you could perch.
Ideal for me, as a seasoned home worker, but many didn't want to work from home, particularly younger folk. I think because, as you say, inadequate space or furnishings or privacy, not enough peace and also a desire to spend their hard-earned in the coffee shops and bars with friends around Canary Wharf. I think some also doubted their motivation.
It's definitely not for everyone but it saves and awful lot of money and, potentially, time - though I found myself working at both ends of the day during the period I would have been commuting.
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