Investors had reacted cautiously to statements by chief executive David Tolley, who said he was renegotiating nearly all of his contracts to fix his “high-cost and inflexible portfolio of leases.”
However, the chief executive noted that even after taking these steps to improve its real estate footprint, WeWork’s current lease liabilities, which account for more than two-thirds of its second-quarter operating costs, remain too high.
With information from Reuters.