WeWork attempted to enter the stock market in 2019, but the decision was rejected after concerns about their business model and the leadership style of their co-founder Adam Neumann. Neumann left the company shortly before the COVID-19 pandemic.
Pandemic restrictions forced workers into a work-from-home model, severely impacting WeWork’s revenue stream and customer base. Their first quarter revenue reports fell by almost 50% to $598 million.
Statements from WeWork indicate that things may be turning around, with office occupancy rates increasing to 50% from 47% in their most recent quarter. They expect this number to continue to climb as restrictions ease and more people are given vaccines.
WeWork also expects that more businesses will be interested in their short-term lease offerings, as businesses consider holding temporary offices in areas where they plan to expand.
So far, WeWork has closed 100 locations and restructured a large portion of their business following Neumann’s departure, which also included a legal settlement between himself and WeWork financial backer SoftBank. The settlement amount was not disclosed, but added to approximately $494 million in restructuring costs.
It is still unclear if WeWork will list their company publicly in 2021.
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