WeWork continues to tighten its belt as it prepares for lower-than-expected earnings by the end of year.
The coworking firm recently announced that it will exit 40 locations in the U.S., totaling around 41,000 work stations. Although the closures are expected to cut down its top-line revenue, the company claims that the decrease in expenses would add $140 million in annual adjusted EBITDA.
WeWork has made strides in recent months thanks to an uptick in demand and focus on corporate members. This year, the company’s occupancy grew four percentage points, while physical memberships grew 23% from last year.
In the meantime, the company has begun signing a variety of lease models and announced new locations, including a new line of exclusive offices for established professionals.
“Our third quarter results illustrate how our disciplined and strategic approach to transforming our business and delivering holistic solutions for a new world of work are paying off,” said CEO Sandeep Mathrani.
“As evidenced by our growth in revenue, reduced costs, optimized portfolio and reinforced balance sheet, we are leveraging all the tools at our disposal to continue executing against our goals.”