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The
company has been working to curb its real estate footprint and
reduce headcount as it grapples with long-term lease obligations
that stood at $15.57 billion as of September-end. Some of
WeWork's tenants, in contrast, are only on short-term leases.
WeWork went public in 2021 after a two-year struggle and
currently has a market cap of around $1.77 billion. Its pre-IPO
valuation was once pegged at nearly $50 billion.
Its shares were down 1.6% at $2.39 in premarket trade on
Thursday.
The closures, of about 41,000 workstations, are expected to pull
down revenue but the simultaneous cost reductions will
contribute roughly $140 million to annual adjusted core
earnings, it said.
The company did not disclose which U.S. locations it would exit.
The New York-based firm also reported third-quarter revenue of
$817 million, below market expectations of $865 million,
according to a Refinitiv poll of five analysts.
Net loss per diluted share came in at 75 cents per share, below
estimates for a loss of 45 cents.
WeWork expects fourth-quarter revenue to be between $870 million
and $890 million, below expectations of $923.8 million.
The company also said it extended the maturity date of its $500
million senior secured notes from February 2024 to March 2025.
The notes remained undrawn at the end of the quarter.
(Reporting by Kannaki Deka in Bengaluru; Editing by Devika
Syamnath)
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