ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Companies

WeWork looks to become profitable in 2021

New chief Marcelo Claure plots shift away from risky long-term leases

A laid-off worker leaves WeWork's corporate headquarters in Manhattan on Nov. 21. The company plans to lay off about 20% of its global workforce.   © Reuters

NEW YORK -- Money-losing office-sharing company WeWork aims to turn a profit in 2021, a source familiar with the situation told Nikkei on Friday.

The target was set out in internal briefing materials by Marcelo Claure, chairman of WeWork parent We Co., the source said. The materials also call for cash flow to turn positive in 2023.

Claure took over as chairman last month as part of a rescue by WeWork's main backer, Japan's SoftBank Group.

We Co. signs long-term leases on office space, which it subleases to individuals and businesses on a monthly basis. This exposes the company to the risk that real estate market worsens or usership plunges.

Claure said We Co. will shift away from these risky long-term leases in cities outside of major markets like New York and London, according to the source. Alternatives include joint ventures and franchising.

We Co. plans to lay off 2,400 employees, or about 20% of its global work force. The company's net loss more than doubled on the year to $1.25 billion in the July-September quarter.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media