WeWork reports smaller loss on uptick in demand for office space

·1 min read
FILE PHOTO: The logo of WeWork is seen in the window of a building in London

(Reuters) -Office-sharing firm WeWork Inc 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.

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.

(Reporting by Sanjana Shivdas and Abhijith Ganapavaram in Bengaluru; Editing by Shinjini Ganguli)

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