After WeWork warned last month that it might not be in business for much longer, its chief executive said on Wednesday that the co-working company was going to try to renegotiate nearly all of its leases and would probably pull out of underperforming locations.
The actions, detailed in a letter from David Tolley, who took over as chief executive after the sudden resignation of Sandeep Mathrani in May, are intended to reduce how much WeWork spends leasing office space.
WeWork, which has lost $15 billion since the end of 2017, has been negotiating lower rents for over three years — and has had some success doing so at a time when landlords are desperate to fill office towers that have been emptied by the work-from-home shift that started during the height of the pandemic.
“We will seek to negotiate terms with our landlords that allow WeWork to maintain our unmatched quality of service and global network, in a financially sustainable manner,” Mr. Tolley said in the letter.
“As part of these negotiations, we expect to exit unfit and underperforming locations and to reinvest in our strongest assets as we continuously improve our product.”
Persons:
WeWork, David Tolley, Sandeep Mathrani, Mr, Tolley