WeWork leaves 40 US locations after low revenue predictions
FILE - This Oct. 15, 2019, file photo shows a WeWork logo at the entrance to one of their office spaces in the SoHo neighborhood of New York. WeWork is slashing nearly 20% of its work force in the wake of its failed stock market debut. The shared-office company said it has laid off 2,400 of its approximately 12,500 employees to “create a more efficient organization.” (AP Photo/Mary Altaffer, File)
WeWork Inc. has predicted that it will not perform well in its fourth-quarter.
Leadership said they decided to leave 40 locations in the United States following the below expected forecasts.
The company provides workspaces for those who don’t go to a traditional office.
WeWork has to deal with high expenses and a strong U.S. dollar, contributing to the predicted loss in profits, Reuters reported.
The company does not own its buildings, but instead leases office space, partitioning it out to clients, the New York Times reported.
The closures are expected to reduce revenue while also reducing overhead costs.
