WeWork is a real estate startup. once deceived supporter It tricks you into believing it’s a $47 billion tech venture, downsizing it. A coworking company plans to close 40 “underperforming locations.” Earnings in the third quarter report released Thursday.
rear some false startsWeWork launched its IPO, Listed in the stock market last year. never mind that it was helped by Billions Bailout by Softbanka special-purpose acquisition (Shell) merger of companies, or the final valuation of this transaction at just $9 billion, less than one-fifth of what it once was.
WeWork has yet to make a profit since it was founded as a public company in 2021. Under former CEO’s leadership, ‘Unicorn’ office space was once on the brink of collapse Aspiring cult leader Adam Neumann still hasn’t found his way to a sustainable business model without him. Meanwhile, Neumann has moved to greener (?) pastures. blockchain carbon credit And… another real-estate company.
In its earnings call on Thursday, WeWork said it had lost $629 million in the last three months, $568 million of which was directly attributable to WeWork Inc. However, he earned $817 million in revenue for the quarter, below market expectations. according to Reuters. WeWork also lowered its projected revenue forecast, citing “slower than expected growth” as the reason.
Again, a real estate company. It’s not like WeWork is spending millions of dollars pouring into groundbreaking technological advancements that will pay off in the long run. The company does not even purchase properties for investment purposes.this don’t own that building. Instead, it leases a large office space from the owner and divides it into smaller short-term leases. A middleman that no one wants.
WeWork didn’t specify exactly where it would be shuttering locations, but said that it expected the move would cut company costs enough to contribute $140 million to future earnings. It remains unclear where there rest of the hundreds of millions needed to get the company out of the red are supposed to come from. In the past year, WeWork Inc share prices have fallen by about 78%, and are hovering around $2.18, as of writing.