WeWork to cut about 300 global jobs as it pares back presence

WEWORK plans to eliminate about 300 roles across countries, the flexible workspace provider said on Thursday (Jan 19), as part of efforts to cut back on underperforming locations.

The company’s shares fell 3.5 per cent to US$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 US locations.

WeWork’s long-term lease obligations stood at US$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 amortisation (EBITDA).

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It had forecast fourth-quarter revenue between US$870 million and US$890 million and adjusted Ebitda to be negative US$65 million to negative US$85 million.

WeWork went public in 2021 after a two-year struggle and has a market cap of around US$1.16 billion. Its pre-IPO valuation was once pegged at nearly US$50 billion. REUTERS