‘WeWork is here to stay’ – says CEO David Tolley

September 07, 2023 04:06 AM AEST | By Invezz

‘WeWork is here to stay’ – says CEO David Tolley — Image source: Invezz

Here’s what CEO Tolley said today in a public letter

Shares of the coworking spaces company took a massive hit last month after it warned of a possible bankruptcy (find out more). But its top boss seems committed to dialling back that risk.

WeWork is here to stay. We are taking immediate action to permanently fix our inflexible and high-cost lease portfolio to achieve a sustainable operating model.

Note that WeWork ended June with $205 million worth of cash and equivalents – less than half what it had at the start of this year.

“We” is trading only at a fraction of its year-to-date high at writing.

CEO Tolley has extensive experience in restructuring

WeWork resorted to a 1-for-40 reverse stock split last month to remain listed on the New York Stock Exchange. A miniseries on the rise and fall of what was once the world’s most valuable startups is available to stream on Apple TV+.

The shared workspace provider has been rounding up restructuring experts in recent weeks. Its Chief Executive David Tolley is also a veteran with extensive experience on that front. His public letter also disclosed today:

We expect to exit unfit and underperforming locations and to reinvest in our strongest assets as we continuously improve our product.

WeWork lost three of its board members in August.

The post ‘WeWork is here to stay’ – says CEO David Tolley appeared first on Invezz.

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