WeWork to cut about 300 global jobs as it pares back presence
12:44 pm Thursday, January 19th, 2023
(Reuters) -WeWork Inc plans to eliminate about 300 roles across countries, the flexible workspace provider said on Thursday, as part of efforts to cut back on underperforming locations.
The company’s shares fell 3.5% to $1.53 in morning trade in a broadly weaker market.
WeWork had enjoyed a pandemic-driven shift to flexible work outside traditional offices, but an uncertain economic environment is forcing companies to reduce their real estate footprint.
The New York-based company had in November announced its exit from 40 U.S. locations.
WeWork’s long-term lease obligations stood at $15.57 billion at September-end, while some of its tenants are only on short-term leases.
The company said on Thursday it expects to report fourth-quarter revenue above forecast and a narrower fall in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
It had forecast fourth-quarter revenue between $870 million and $890 million and adjusted EBITDA to be negative $65 million to negative $85 million.
WeWork went public in 2021 after a two-year struggle and has a market cap of around $1.16 billion. Its pre-IPO valuation was once pegged at nearly $50 billion.
(Reporting by Kannaki Deka in Bengaluru; Editing by Shinjini Ganguli and Sriraj Kalluvila)
