WeWork to exit 40 locations in U.S. to cut costs
The WeWork logo is displayed on a screen during the company's IPO on the floor of the New York Stock Exchange in New York City, U.S., October 21, 2021. REUTERS/Brendan McDermid/File photosaid on Thursday it will exit about 40 locations across the United States and forecast current-quarter revenue below estimates as the flexible workspace provider faces high expenses and a strong U.S. dollar.
The company has been working to curb its real estate footprint and reduce headcount as it grapples with long-term lease obligations that stood at $15.57 billion as of September-end. Some of WeWork's tenants, in contrast, are only on short-term leases. WeWork went public in 2021 after a two-year struggle and currently has a market cap of around $1.77 billion. Its pre-IPO valuation was once pegged at nearly $50 billion.The closures, of about 41,000 workstations, are expected to pull down revenue but the simultaneous cost reductions will contribute roughly $140 million to annual adjusted core earnings, it said.
The company also said it extended the maturity date of its $500 million senior secured notes from February 2024 to March 2025. The notes remained undrawn at the end of the quarter.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
WeWork posts wider-than-expected Q3 loss and misses on revenueOffice-sharing company WeWork Inc. undefined posted a net loss of $568 million, or 75 cents a share, for the third quarter, narrower than the loss of $802...
Read more »
Mayor: Veterans Day Parade canceled Friday, Jacksonville Fair closing Thursday because of NicoleAmong the closures and major schedule changes in preparation for Nicole, the Jacksonville Veterans Day Parade and breakfast on Friday will not take place, Mayor Lenny Curry announced Tuesday.
Read more »
Congressman Chuy Garcia to launch campaign for mayor on ThursdayU.S. Rep. Jesus 'Chuy' Garcia, expected to sail to victory today in his bid for a third term in Congress, plans to jump into the race for mayor of Chicago on Thursday.
Read more »
St. Augustine suspends solid waste, yard debris collections ThursdayThe city of St. Augustine said that due to deteriorating weather conditions, solid waste yard debris collections will be suspended Thursday, Nov. 10.
Read more »