WeWork’s critics have long argued that the co-working giant would end up in bankruptcy in an economic downturn the way flex-office provider Regus did in 2003. The 10-year-old company, largely inflated by more than $9 billion from SoftBank, has seen its valuation plummet in the past year. Now, as former General Growth Properties CEO Sandeep Mathrani tries to make WeWork profitable during the pandemic and economic uncertainty, here’s a look at some of the big numbers.
WeWork’s valuation as of late May. The company had been valued as high as $47 billion before its botched IPO last year.
WeWork’s lease obligations as of last June. The company has hired brokers at JLL and Newmark Knight Frank to renegotiate some of its leases, reportedly looking for reductions of up to 30 percent.
The number of WeWork locations around the world, as of March. Until last year, WeWork was growing at breakneck speed, guaranteeing leases to landlords to secure an ever-growing portfolio of office space.
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The number of leases WeWork may reportedly exit or rethink as it looks to cut costs. In a call with Citigroup analysts last month, Mathrani detailed the steps WeWork is taking to review its global portfolio, according to the Financial Times.
The amount of long-term debt WeWork held when it issued its 2019 prospectus, including credit agreements with JPMorgan and $669 million in corporate bonds. Those bonds were trading for as low as 28 cents on the dollar in May.
The number of employees WeWork has laid off since November. At its peak late last year, the company employed about 14,500 people.
The number of original co-founders still at the company. Miguel Mckelvey announced plans to leave in June, and Adam Neumann and his wife Rebekah left in September. Former co-CEOS Artie Minson and Sebastian Gunningham, as well as U.S. head of real estate Aaron Ellison have also left in recent months.
Contact Rich Bockmann at [email protected] or 908-415-5229