WeWork plans to shutter 40 locations in US
Many of the closures are expected to happen in November
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Office co-working company WeWork announced Thursday it has plans to shutter over three dozen locations across the U.S.
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The roughly 40 locations WeWork intends to close are "underperforming" and consist of roughly 41,000 total workstations, according to a company earnings release. The exits from the locations are expected to largely occur in November.
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CEO Sandeep Mathrani said on the earnings call that "members in these locations have all been notified," with most having already been relocated to "higher-quality WeWork assets." He also noted the closures continued efforts to "prune the portfolio" that started after he came onboard in 2020.
A WeWork sign in front of a building in Arlington, Virginia, on October 15, 2021. ( OLIVIER DOULIERY/AFP via Getty Images / Getty Images)
WeWork, which had one of the most spectacular IPO implosions in recent years, is trying to go public again, and some of the factors that worried regulators on the first deal are back again. (Photo by Robert Alexander/Getty Images)
"These closures are expected to reduce top-line revenue," the company’s release said. "However, they are expected to also reduce rent, tenancy and building operating expenses, and, once fully implemented, are expected to contribute approximately $140 to annual Adjusted EBITDA."
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WeWork generated $817 million in third-quarter revenue, up slightly from the prior quarter and 24% from 2021’s third quarter. Its net loss narrowed from the same three-month period last year, coming in at $629 million.
New York - March 28, 2019: The WeWork location on 40th Street near 6th Avenue. (iStock / iStock)
In its outlook, the office co-working company projected that it would post fourth-quarter revenue in the range of $870 to $890 million.
Full-year revenue, meanwhile, is expected to wind up being $3.35 to $3.37 billion, WeWork said. It had previously guided $3.4 to $3.5 billion.