WeWork Announces Substantial Progress in Real Estate and Financial Restructuring

WeWork has announced it has determined a final path forward at 90% of the locations in its global real estate portfolio through amended leases, new management agreements, or via the lease rejection process. This represents a significant milestone in WeWork’s global restructuring.

Following a thorough evaluation of the short- and long-term economic viability of over 500 WeWork wholly owned locations, in September 2023 the Company kicked off a comprehensive process of global engagement with its landlords. Since then, the Company has been working diligently to reach new lease terms more aligned with current real estate market conditions. As a result of this dramatic reduction in future rent expenses and further improved operating efficiency, WeWork is on track to deliver strong and sustainable financial performance following the completion of its restructuring.

Key achievements to date include:

• Agreements in principle to amend approximately 150 leases, with many contracts complete and others in various stages of execution;
• Approximately 150 locations where existing lease terms support WeWork's current go-forward business plan, to be assumed as part of the Chapter 11 process or to remain in effect internationally;
• Approximately 150 lease rejections or negotiated building exits completed or in progress;
• Over $8 billion, or over 40%, reduction in total future rent commitments*; and
• Agreement with holders representing 92% of its secured notes to eliminate over $3 billion in prepetition secured debt obligations.

“We are well on our way to building a strong and sustainable WeWork,” said David Tolley, Chief Executive Officer. “The size, scope, and complexity of our real estate restructuring is unprecedented in our industry, and we’ve made remarkable progress to date optimizing our building footprint. We remain committed to emerging from our global real estate and financial restructuring later this quarter, and expect to do so with little to no debt and as a continuing leader in our industry, operating over 20 million square feet of real estate in over 20 countries around the world.”

Peter Greenspan, Global Head of Real Estate, added, “We are extraordinarily grateful to the many landlords who have collaboratively worked with us to reach agreements. We want to build the future of WeWork with our landlords as partners and since we embarked on this process, our goal has been to find a positive future in as many of our buildings as possible. While there is still more work to be done, and some hard decisions remain, the majority of this project is now behind us.”