By Michael Elkins
WeWork Inc (NYSE:WE) announced Thursday that the company plans to cut about 300 roles in order to cut costs, as high inflation weighs on office workspace spending. The New York-based company offers workstations, private offices and customized floors and had enjoyed a pandemic-driven shift to flexible work outside traditional offices. However, with companies cutting their spending, WeWork is looking to reduce its real estate footprint and workforce to prepare for a looming recession.
The company also announced Thursday that they will issue financial results for the fourth quarter and full year ending December 31, 2022, on Thursday, February 16, 2023, and expect to report fourth-quarter revenue and adjusted EBITDA above its earlier expectations.
In November, WE announced its exit from 40 U.S. locations and said it expected fourth-quarter revenue between $870 million and $890 million, below the Street’s target of $923.8M. WE also forecast adjusted EBITDA to be negative $65M to negative $85M.
Shares of WE are up 1.88% in early trading on Thursday.