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WeWork Shares Fall by 24%

WeWork Shares Fall by 24%
09 August 2023 | Updated 10 August 2023

WeWork, the co-working office space company, has seen its shares drop by 24 per cent during extended trading, causing “substantial doubt” over the company’s future.

In its 2023 Q2 results statement, Interim CEO David Tolley described “a difficult operating environment” and “increasing competition in flexible space” as being to blame.

Due to cash losses and “increased member churn”, WeWork will have to implement cost-saving measures such as reducing rent and tenancy costs, limiting capital expenditures and seeking additional capital through asset sales.

This comes three months after WeWork announced it had improved its liquidity position following debt restructuring that resulted in new funding and new and rolled capital commitments of over $1 billion.

The company statement reads: “The Company’s ability to continue as a going concern is contingent upon successful execution of management’s plan to improve liquidity and profitability over the next 12 months”

The statement also revealed the departure of Daniel Hurwitz, Vivek Ranadivé and Véronique Laury from WeWork’s board, and the appointment of Paul Aronzon, Paul Keglevic, Elizabeth LaPuma and Henry Miller.

WeWork has 610 locations across 33 countries, which supported approximately 715,000 workstations and 512,000 physical memberships as of June 2023.

Picture: a photograph of a desk with paperwork, pens a watch and a WeWork branded mug. Image Credit: Unsplash

Article written by Ella Tansley | Published 09 August 2023


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