December 7, 2021, 19:53

    WeWork reports smaller loss on uptick in demand for office space

    WeWork reports smaller loss on uptick in demand for office space

    Nov 15 (Reuters) – Office-sharing firm WeWork Inc (WE.N) on Monday reported a smaller loss in its first quarterly result since going public last month, as a rebound in demand for office space due to easing COVID-19 related restrictions helped boost occupancy.

    WeWork said occupancy in its offices, which cater to both individual and corporate members, was at 59% as of Sept. 30, up 9% from a year earlier. Total memberships were up at 578,000 from 542,000.

    The pandemic has also prompted many companies to adopt a more hybrid model, where employees have the flexibility to work from offices, co-working spaces, public areas and home, partly helping Softbank-backed WeWork.

    Register now for FREE unlimited access to reuters.comRegisterThe logo of WeWork, a company owned by Japan's SoftBank Group Corp, is seen in the window of an office building in London, Britain, July 3, 2020. REUTERS/Simon Newman/File Photo

    The company has attempted to cut losses by exiting unprofitable leases and selling non-core assets, after finally succeeding in going public through a merger with a blank-check firm in a $9-billion deal.

    It reported a net loss of $844.3 million in the third quarter ended Sept. 30, compared with a loss of $999.5 million a year earlier.

    The loss also included one-time expenses of $262 million, mainly from depreciation and impairment of assets.

    WeWork said it ended the third quarter with cash and unfunded cash commitments of $2.3 billion.

    Register now for FREE unlimited access to reuters.comRegisterReporting by Sanjana Shivdas and Abhijith Ganapavaram in Bengaluru; Editing by Shinjini Ganguli

    Sourse: reuters.com

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