WeWork will close 40 US locations to cut costs

11 Nov 2022 , 07:31 AM

WeWork Inc. announced that it will close roughly 40 facilities throughout the country and expects its revenue for the current quarter to fall short of expectations due to high costs and a strong dollar.

As of September 30, the corporation has been attempting to shrink its real estate footprint and employee numbers as it struggles to pay $15.57 billion in long-term lease obligations. Contrarily, several of WeWork’s tenants have only temporary agreements.

After a two-year struggle, WeWork went public in 2021 and has a market valuation of approximately $1.77 billion right now. It once had a pre-IPO valuation of close to $50 billion.