WeWork warns there’s ‘substantial doubt’ about its ability to stay in business

WeWork went public in October 2021 after a spectacular collapse during its first attempt to do so two years earlier — which led to the ousting of its CEO and founder, Adam Neumann. The company was valued at $47 billion at one point, before investors started to drop off due to Neumann’s erratic behavior and exorbitant spending.

The company leases buildings and divides them into office spaces to sublet to its members, which include small businesses, startups and freelancers who want to avoid paying for permanent office space.But over time its operating expenses soared and it relied on repeated cash infusions from private investors. The company also said Tuesday it is facing high member turnover rates.

WeWork’s interim CEO, David Tolley, sounded an optimistic note Tuesday in the company’s results for the second-quarter, during which it lost $349 million. “The company’s transformation continues at pace, with a laser focus on member retention and growth, doubling down on our real estate portfolio optimization efforts, and maintaining a disciplined approach to reducing operating costs,” Tolley said.

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