WeWork reports quarterly loss of nearly $2.1 bn ahead of public listing

SoftBank-backed office-sharing start-up WeWork on Thursday reported a first-quarter net loss of $2.06 billion, as it was hit by restructuring charges while it prepares to go public through a merger with a blank-check firm. 

WeWork said its business was recovering as more people returned to offices due to easing of Covid-19 curbs, after work-from-home arrangements last year weighed heavily on the company by reducing occupancy and increasing operating costs.

Total occupancy ticked up to 50 per cent in the first quarter compared to 47 per cent in the fourth quarter, the company said.

WeWork in March agreed to go public through a merger with BowX Acquisition Corp, a special purpose acquisition company, in a deal that valued it at $9 billion. 

SoftBank Group Corp said it would retain a majority stake in the company after the merger.

The company said first-quarter revenue nearly halved to $598 million from a year ago.