WeWork cutting hundreds of global jobs
WeWork expects its fourth quarter revenue to top earlier estimates
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WeWork announced Thursday that the company is cutting its global workforce as it contends with the uncertain economy.
In order to continue to streamline operations and optimize its portfolio, the company said it is cutting 300 positions.
The news comes as the New York-based company said it expects its fourth-quarter revenue and adjusted EBITDA to exceed its earlier expectations.
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The company has said that its differentiated business model enabled it "to capitalize on the headwinds across the traditional office."
A WeWork logo is seen outside its offices in San Francisco on Sept. 30, 2019. (Reuters / Kate Munsch / Reuters Photos)
However, as the economy weighs on companies, WeWork has been focusing on cutting down its footprint.
"As you know, we significantly pruned the portfolio after I joined in early 2020, and we've continued these efforts in earnest with a planned exit of approximately 40 locations," WeWork CEO Sandeep Mathrani said in an earnings call in November.
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WeWork leases buildings and divides them into office spaces to sublet to members, which include small businesses, start-ups and freelancers who want to avoid paying for permanent office space.
A WeWork sign in front of a building in Arlington, Virginia, on Oct. 15, 2021. (Olivier Douliery / AFP via Getty Images / Getty Images)
But over time its operating expenses became exorbitant and it relied on repeated cash infusions from private investors.
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WeWork finally became a publicly traded company in 2021, two years after its first attempt to do so crashed in spectacular fashion.
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The company was valued at $47 billion before investors began to buck after being fed up with exorbitant spending and erratic behavior from CEO and founder Adam Neumann, who was later ousted.
The Associated Press contributed to this report.