WeWork is renegotiating nearly all of its leases with landlords and plans to exit “unfit and underperforming” locations, Chief Executive Officer David Tolley said on Wednesday.
“We intend to remain in the majority of our buildings and markets,” Tolley said in a statement posted on the co-working company’s website. “As when we’ve closed locations in the past, we will promptly inform members and offer alternative arrangements and additional support to minimize any disruption or inconvenience.”
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WeWork warned investors last month that there was “substantial doubt” about its ability to stay in business. The company’s chance of staving off bankruptcy depends in large part on whether it can terminate or renegotiate a substantial number of its leases in more expensive markets.
The disclosure Wednesday failed to rebuild confidence in the business. The shares declined 2% in intraday trading.
The company’s business has struggled as many people have continued to work from home after the pandemic, cutting into demand for office space. WeWork has said it’s focusing over the next year on cutting rental costs, negotiating more favorable leases, boosting revenue and raising money.
