Coworking pioneer WeWork is closing 40 US locations it says are "obsolete" or in markets with "oversupply" after reporting losses totaling about $1.8B for the first three quarters of 2022.
The company did not specify the overall size of the office footprint it intends to vacate but estimated in a Q3 earnings call it will pay about $200M over the next 15 months to exit the leases on spaces it is giving up, hoping to generate cost savings estimated at $140M in EBITDA.
Despite a surge of demand for flexible office space as more companies embrace hybrid work patterns—and a 24% improvement in revenue, which grew to $817M—WeWork reported a net loss of $629M in Q3.
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