WeWork has outlined new steps to keep it afloat through the pandemic after its typical model of aggressive expansion left it with huge vacancies
In 2019, accounts filed at the UK’s Companies House found that WeWork International had losses of £234 million. Once the pandemic hit, the income from users of its spaces quickly shriveled up.
According to a statement from WeWork, the company “expects there will be a material impact on the global demand” for its services.
Collecting and actually accruing rent has become immensely more difficult as employees largely work from home and demand for these spaces dwindles.
However, WeWork said its parent company WeWork Inc. had enough cash reserves to withstand the uncertainty the future may hold. Still, the company did not specify any concrete plans to confront the inevitable growth of remote working policies.
The company did say it would adapt to the evolving needs of their customers “as they consider a return to work in the coming months.”
“These enhancements include implementing professional distancing standards, de-densifying common areas, and reconfiguring offices,” the company added.
For now, the operator will pause opening new offices and instead invest into marketing and maintenance during this time.
It will also have to renegotiate the terms of leases with commercial landlords in hopes of deferring or reducing rents.