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WeWork has outlined a few radical steps in a bid to survive Covid-19 crisis while raising long term future.
- The company signed a series of new leases for buildings in 2019, following which, it racked up losses of £234 million.
- In the short term, the company will reduce costs by deferring the opening of new offices.
- The company has stated that the severity at which Covid-19 could continue to impact its global business and its operations in the UK depends on future developments are still not certain, cannot be forecast and is beyond the control of the company.
- The workspace provider said that it is making all efforts to turn its properties Covid-proof by applying all the required measures.
- WeWork has though stated that it and its US parent company, WeWork Inc, had enough cash reserves to survive the near-term anxiety.
- Recently, Erik Wullschleger, WeWork’s Midwest Area Director had expressed his views to other pandemic influenced transitions such as Dropbox’s. Adding that for many companies, the office they left this spring will look vastly different from the one they will return to. Companies are also looking at models like the hub and spoke for their offices.
- In the year ended 31 December 2019, the company’s UK business had posted a massive operating loss of £231.6 million, almost four times as compared to the previous year.
