**WeWork Faces Uncertain Future as Shares Decline**
WeWork, a co-working company, has expressed concerns about its ability to continue operating due to sustained losses and canceled memberships. As a result, the company’s shares have declined by more than 14% in extended trading.
**Strategies to Improve Financial Situation**
In an effort to address its financial challenges, WeWork has outlined several strategies for the next 12 months. These strategies include reducing rental costs, negotiating more favorable leases, increasing revenue, and raising capital.
**Previous Debt Reduction Efforts**
This warning from WeWork comes just months after the company struck a deal with its major creditors and SoftBank to reduce its debt by approximately $1.5 billion and extend other maturities. Despite these efforts, the company’s bonds continue to trade at distressed levels.
**Slow Recovery from the Pandemic**
WeWork’s office locations were heavily impacted by the Covid-19 pandemic, with occupancy rates dropping significantly. While there has been some progress in filling up the spaces over the past year, WeWork reported a decline in occupancy in the second quarter compared to the previous quarter. This casts doubt on the sustainability of the company’s recovery.
In addition to its financial struggles, WeWork has also experienced changes in leadership. Sandeep Mathrani, who became CEO in 2020, stepped down in May to join private equity firm Sycamore Partners. Currently, WeWork has an interim CEO. These leadership changes may further complicate the company’s efforts to overcome its challenges.
**Changes in Board Composition**
WeWork has recently announced changes in its board composition. Three independent board members are being replaced by four new board members. This change reflects the company’s ongoing efforts to navigate its financial difficulties and restore confidence among its stakeholders.