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WeWork Declares Intent to Renegotiate Almost All Leases

Still, it is not clear whether landlords will want to reduce the costs of the leases further, and that may explain why WeWork said it was prepared to walk away from certain spaces.

WeWork’s empire is still huge. At the end of June, the company said it had 777 locations globally, the same number as a year earlier. And demand for its space appears to be declining. WeWork reported that occupancy and memberships declined in the second quarter from the first quarter.

Under Adam Neumann, a co-founder and former chief executive, WeWork grew exponentially before the pandemic. Mr. Neumann contended that shared work spaces would revolutionize how people worked. But the company’s huge losses prompted it to withdraw an initial public offering in 2019 and receive a bailout from SoftBank, the Japanese conglomerate.

WeWork went public in 2021 by merging with a blank check company, but its stock traded for pennies for months, prompting it to carry out a reverse stock split last week that was aimed at obtaining a share price above $1, a requirement for a New York Stock Exchange listing.

“Substantial doubt exists about the company’s ability to continue as a going concern,” WeWork said last month. And the company is still burning through large amounts of cash. In the first half of this year, WeWork’s operations consumed $530 million, almost as much as in the first half of 2022.


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