WeWork: Shares slide as it raises 'substantial doubt' over future

Shares of WeWork, the erstwhile globally hyped bureau abstraction sharing company, person plunged aft it raised "substantial doubt" astir its future.

The company's shares fell by adjacent to 24% successful extended trading successful New York.

The steadfast added that its absorption needed to rise further superior to support it afloat implicit the adjacent 12 months.

WeWork, which is backed by Japanese tech elephantine Softbank, was deed hard by the pandemic arsenic societal distancing rules drove radical to enactment from home.

However, it has yet to crook a nett adjacent aft workers returned to offices arsenic coronavirus restrictions eased.

On Tuesday, WeWork said successful a statement that it faced challenges including softer request and a "difficult" operating environment.

"Substantial uncertainty exists astir the company's quality to proceed arsenic a going concern," the steadfast said.

It added: "The company's quality to proceed arsenic a going interest is contingent upon palmy execution of management's program to amended liquidity and profitability implicit the adjacent 12 months."

The program involves raising further superior done the issuance of stocks oregon bonds, oregon plus sales.

The absorption volition besides determination to trim rental costs and bounds superior expenditures, WeWork said.

WeWork presently has 512,000 members astatine its workspaces successful 33 countries astir the world.

The company's archetypal effort to spell nationalist collapsed successful 2019 implicit concerns astir its concern exemplary and co-founder Adam Neumann's enactment style.

It was listed 2 years aboriginal successful a woody that valued WeWork astatine $9bn. That was astir a 5th of its estimated worth successful 2019.

The steadfast has besides struggled to header with troubles successful the exertion sector.

It has seen the exits of respective apical executives this year, including that of erstwhile main enforcement and president Sandeep Mathrani.

In March, WeWork said it had struck deals with Softbank and different investors to trim its indebtedness by astir $1.5bn.

Shares successful the institution person fallen by much than 95% successful the past year. Shares fell by different 3rd successful extended hours trading connected Wednesday to $0.21 (£0.16).