WeWork lost $ 1.25 billion in the third quarter

The co-working company WeWork, in the midst of a rescue by its Japanese shareholder SoftBank Group, lost $ 1.25 billion in the third quarter, according to a document obtained by American daily newspapers.

According to the Wall Street Journal, the revenues of the American company increased by 94% in one year, to 934 million dollars for the period from July to September.

In the second quarter, it had already recorded $ 638 million in losses.

According to the New York Times, in this document, WeWork explains that expenses have increased very rapidly in areas such as rental costs but also “development of new markets”, which notably include acquisitions in technologies desired by Adam Neumann.

The extravagant ousted boss of WeWork is known for his lavish spending and various escapades that eventually tire the business community and many employees.

SoftBank’s rescue plan involves the final departure of the former CEO’s governing bodies, who will only keep a small stake in the capital and a symbolic title of observer.

WeWork had planned to go public this fall. The company had $ 2.5 billion in cash as of June 30, but construction costs and other expenses drew that money, banking sources said.

Questions have also multiplied about its ability to earn money and cope with the global economic slowdown, real estate being often one of the first sectors affected.

read more  TransCanada changes name to TC Energy

Related Posts