By Lynn Doan | Bloomberg
WeWork is currently engaged in the process of renegotiating the majority of its lease agreements with landlords. Furthermore, the company has expressed its intention to exit locations that are deemed “unfit and underperforming,” according to Chief Executive Officer David Tolley’s statement on Wednesday.
Tolley stated on WeWork’s website, “We will make an effort to remain present in the majority of our buildings and markets. If there are any closures, we will promptly inform our members and provide them with alternative options and additional assistance to minimize any inconvenience they may experience.”
For more information, read: Is the office really necessary anymore?
Following this disclosure, the company’s shares experienced a 7% increase.
It should be noted that WeWork recently expressed doubt about its ability to sustain its operations, which has raised concerns among investors. The company’s potential for avoiding bankruptcy largely depends on its ability to terminate or renegotiate a significant number of its leases in higher-priced markets.
Due to the ongoing pandemic, many individuals have opted to continue working from home, resulting in decreased demand for office spaces. WeWork acknowledges this challenge and has outlined its strategy for the upcoming year, which includes reducing rental costs, negotiating more favorable lease agreements, increasing revenue, and seeking additional financial support.
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