• Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans

Subscribe to Updates

Get the latest finance news and updates directly to your inbox.

Top News

Amazon, Starbucks, Home Depot in the Hot Seat As Boycotts Heat Up

July 2, 2025

Check Your Budget: 15 Cities and States Are Hiking Minimum Wage in July

July 2, 2025

10 Budgeting Rules That Are Quietly Hurting Middle-Class Families

July 2, 2025
Facebook Twitter Instagram
Trending
  • Amazon, Starbucks, Home Depot in the Hot Seat As Boycotts Heat Up
  • Check Your Budget: 15 Cities and States Are Hiking Minimum Wage in July
  • 10 Budgeting Rules That Are Quietly Hurting Middle-Class Families
  • How One Founder Is Rethinking Supplements With David Beckham
  • Why Your Finance Team Needs an AI Strategy, Now
  • AI Startup TML From Ex-OpenAI Exec Mira Murati Pays $500,000
  • He Went From $471K in Debt to Teaching Others How to Succeed
  • Summer Financial Checklist
Wednesday, July 2
Facebook Twitter Instagram
FintechoPro
Subscribe For Alerts
  • Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans
FintechoPro
Home » WeWork shares sink after warning of bankruptcy risk
Investing

WeWork shares sink after warning of bankruptcy risk

News RoomBy News RoomAugust 9, 20230 Views0
Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Email Tumblr Telegram

© Reuters. The WeWork logo is displayed on a screen during the company’s IPO on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 21, 2021. REUTERS/Brendan McDermid/File photo

(Reuters) -WeWork on Tuesday warned of a possible bankruptcy after reporting yet another quarterly loss, in a stunning reversal of fortune for the shared workspace provider that was valued at $47 billion in 2019.

The SoftBank-backed firm is worth just $446.8 million as of last closing share price. The stock plunged 16.5% to 20 cents before the bell on Wednesday after it said three board members would step down.

WeWork has been struggling to turn a quarterly profit as hybrid work culture and job cuts in the tech sector have hampered demand for its workspaces.

The departure of its CEO and CFO earlier this year has also complicated its turnaround efforts. The company said on Tuesday that the search for a new CEO is on.

WeWork said it may need to consider strategic options, including raising more money or obtaining relief under the U.S. Bankruptcy Code.

The company has been in a turmoil ever since it filed its IPO paperwork in 2019 as investors pointed out governance issues involving its then founder-CEO Adam Neumann.

They also raised concerns about burgeoning losses and questioned its business model that involved taking long-term leases and renting out spaces for a short term.

As a result, its valuation fell to as low as $10 billion in the back half of 2019 from $47 billion and it withdrew the IPO plans after ousting Neumann.

WeWork eventually went public in 2021 through a SPAC (special purpose acquisition company) merger amid persistent doubts over its business model.

As results suffered, WeWork reached a deal in March to cut debt by about $1.5 billion and extend the date of some maturities in a bid to preserve cash.

It shuttered offices and laid off workers, helping the company report a smaller net loss of $349 million in the second quarter compared to $577 million a year ago.

WeWork burnt $646 million in cash in the first six months of 2023 and as of June end is left with $205 million in hand.

The company said it was planning to shore up liquidity by reducing rent and tenancy costs, controlling expenses and reducing member churn.

Read the full article here

Featured
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Articles

Amazon, Starbucks, Home Depot in the Hot Seat As Boycotts Heat Up

Burrow July 2, 2025

Check Your Budget: 15 Cities and States Are Hiking Minimum Wage in July

Make Money July 2, 2025

10 Budgeting Rules That Are Quietly Hurting Middle-Class Families

Budgeting July 2, 2025

How One Founder Is Rethinking Supplements With David Beckham

Make Money July 1, 2025

Why Your Finance Team Needs an AI Strategy, Now

Investing July 1, 2025

AI Startup TML From Ex-OpenAI Exec Mira Murati Pays $500,000

Make Money July 1, 2025
Add A Comment

Leave A Reply Cancel Reply

Demo
Top News

Check Your Budget: 15 Cities and States Are Hiking Minimum Wage in July

July 2, 20250 Views

10 Budgeting Rules That Are Quietly Hurting Middle-Class Families

July 2, 20250 Views

How One Founder Is Rethinking Supplements With David Beckham

July 1, 20250 Views

Why Your Finance Team Needs an AI Strategy, Now

July 1, 20250 Views
Don't Miss

AI Startup TML From Ex-OpenAI Exec Mira Murati Pays $500,000

By News RoomJuly 1, 2025

The $10 billion AI startup Thinking Machines Lab (TML), which was founded by former OpenAI…

He Went From $471K in Debt to Teaching Others How to Succeed

July 1, 2025

Summer Financial Checklist

July 1, 2025

3 Gently Used Cars You Can Still Buy for Under $20,000

July 1, 2025
Facebook Twitter Instagram Pinterest Dribbble
  • Privacy Policy
  • Terms of use
  • Press Release
  • Advertise
  • Contact
© 2025 FintechoPro. All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.