Wework narrows losses amid hybrid working shift
Office sharing startup Wework narrowed its losses in the second quarter as companies increasingly turn to hybrid working strategies after the pandemic.
Net loss slipped to $922.5m (£666m) in the three months to the end of June, down from $1.1bn in the same quarter last year.
Revenue for the period was $593m, down from $882m in 2020.
Wework said its recovery had accelerated in the second quarter, with the shift to more flexible working patterns driving increases in both desk sales and occupancy.
Consolidated new desk sales totaled 98,000 in the second quarter, equating to 5.9m square feet sold. Consolidated total occupancy increased to 52 per cent from 48 per cent in the first three months of the year.
“The demand from businesses of all sizes accelerated through the quarter and steadily continued into July, delivering strong sales momentum that will drive occupancy and revenue growth,” said chief executive Sandeep Mathrani.
“Wework’s broad spectrum of flexible solutions has made our value proposition more apparent than ever and we are well positioned to provide companies around the world with the flexibility to adapt to the changing needs of the hybrid workforce.”
The improved trading reflects similar performance for rival IWG, which earlier this week said demand for office space had bounced back to pre-Covid levels.
It comes as Wework gears up for an initial public offering (IPO) a year and a half after its failed attempt to list in 2019.
The company is set to go public through a blank-cheque deal valuing it at $9bn.