WeWork posts solid quarterly loss
The company incurred restructuring costs of $494 million, posting an impairment charge of $299 million
Stocks impacted: WeWork
SoftBank-backed office-sharing startup WeWork reported a first-quarter net loss of $2.06 billion, being hit by restructuring charges. Last year's $556-million loss was only starting to show the impact of the pandemic. WeWork said it had 490,000 members in the first quarter, compared to 693,000 in March 2020. Occupancy rose to 50% from 47% in the fourth quarter. The company incurred restructuring costs of $494 million, posting an impairment charge of $299 million. Earlier this year, WeWork agreed to go public through a merger with BowX Acquisition Corp in a deal that valued it at $9 billion. However, regulators are concerned the deal could be a repeat of the company’s botched IPO attempt in 2019.
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