WeWork expects to have positive cash flow in 2021: Report

WeWork at Shoreditch, London. Photo by Uygar Kilic on Unsplash

WeWork Executive Chairman Marcelo Claure said the office-sharing company was on course to have positive cash flow in 2021, a year earlier than a target the company set in February, the Financial Times reported on Sunday.

Claure, in an interview with the newspaper, said WeWork has seen strong demand for its office spaces since the start of the coronavirus outbreak.

The SoftBank-controlled company has also reduced its workforce by more than 8,000 people, renegotiated leases and sold off assets to reduce its cash burn and shed costs, FT said.

New York-based WeWork is currently in the middle of executing a five-year turnaround plan set out this year and is shaking up its top management ranks under Claure.

The plan included a target of reaching operating profitability by the end of next year and Claure told the FT that WeWork remains on track to meet it.

“Everybody thought WeWork was mission impossible,” Claure, who is also a SoftBank executive, was quoted as saying by the FT. “And now, a year from now, you are going to see WeWork to basically be a profitable venture with an incredible diversity of assets.”

WeWork told Reuters it did not have any further comment beyond the FT interview.

The company has gone through a tumultuous period since abandoning its initial public offering (IPO) in September. It was forced to push out co-founder Adam Neumann last year after SoftBank and other shareholders turned on him over his management style, his numerous conflicts of interest and his handling of the IPO.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.