Trending

WeWork under pressure as losses soar to $1.25B

The third-quarter net loss is up from $497 million a year ago

WeWork co-CEOs Artie Minson and Sebastian Gunningham
WeWork co-CEOs Artie Minson and Sebastian Gunningham

WeWork lost $1.25 billion in the third quarter — up from $497 million in the same time period last year.

The parent of the troubled-office startup also reported a surge in revenue to $934 million in the months following Sept. 30, the Wall Street Journal reports, citing a report to debtholders this week.

Sign Up for the undefined Newsletter

The $1.25 billion loss falls in contrast to the $638 million loss posted in the second quarter. The company blamed the third-quarter figures on rising expenses outpacing growth.

The startup’s mounting losses had caused concern among potential investors when the company attempted to go public this fall. The ill-fated plan led to the company’s valuation dropping from $47 billion to about $8 billion, and the ousting of founder and CEO Adam Neumann.

Since Neumann’s departure, the company has been scrambling to get back on track. It is reportedly in talks with T-Mobile US Inc. chief executive John Legere about taking over the position. [WSJ] — Sylvia Varnham O’Regan

Recommended For You