Thursday 10 November 2022 11:02 PM WeWork will close 40 locations across the US as it struggles to turn a profit trends now
WeWork has said it plans to shutter about 40 'underperforming' locations in the US, as the struggling office-sharing company seeks to turn a profit.
The company, which runs about 750 locations around the world, declined to specify which buildings would be closed.
The announcement came as WeWork reported third-quarter results on Thursday morning, announcing losses that were wider than expected and projecting revenue for the current quarter that missed estimates.
Still, WeWork shares reversed recent losses and jumped 7 percent for the day, as investors positively assessed the company's aggressive cost-cutting plans and the broader market surged.
WeWork has said it plans to shutter about 40 'underperforming' locations in the US, as the struggling office-sharing company seeks to turn a profit
'These locations are those that don't meet our design criteria, have obsolescence or there's an oversupply in the market,' WeWork CEO Sandeep Mathrani said
The closures are expected to cost about $200 million in remaining rent payments on the leases, while contributing roughly $140 million to annual adjusted core earnings, WeWork CEO Sandeep Mathrani said.
'These locations are those that don't meet our design criteria, have obsolescence or there's an oversupply in the market,' said Mathrani.
The company has been working to curb its real estate footprint and reduce headcount in the face of long-term lease obligations that stood at $15.57 billion at September-end. Some of its tenants, in contrast, are only on short-term
