WeWork to quit 40 US locations

The New York-listed firm said that as part of ongoing efforts to "optimise and enhance" its real estate portfolio, it was exiting around 40 underperforming US locations, compromised of around 41,000 workstations.

The closures started in the third quarter, but most are expected to happen in November.

WeWork, which was once valued at $47bn, confirmed the closures would impact top line revenues but would contribute around $140m to annual adjusted earnings before interest, tax, depreciation and amortisation once completed, because of reduced rent and building operating expenses.

The update came as WeWork reported revenues of $817m in the three months to 30 September, a 24% jump on the same period a year earlier, while losses from operations narrowed to $336m from $640m.

Pre-tax losses were $626m, compared to $846m a year previously, while basic losses per share fell to $0.75 from $5.50.

Consolidated physical occupancy was 71% in the quarter, with around 8,000 memberships and 7,000 workstations added.

Sandeep Mathrani, chief executive - who took over in 2019 from controversial predecessor Adam Neumann - said: "Our third-quarter results demonstrate how our disciplined and strategic approach to transforming our business and delivering holistic solutions for a new world of work are paying off.

"We remain focused on strengthening our business while navigating a volatile macroeconomic environment."

As at noon GMT, WeWork was up 4% in pre-market trading.