WeWork on Tuesday raised doubt about its ability to stay in business as the co-working space provider faces losses and a dwindling cash pile amid major changes in the way people work, WSJ Pro Bankruptcy reported. WeWork, once one of the world’s most valuable startups worth $47 billion, said Tuesday excess supply of commercial real estate, greater competition for flexible space and uncertain economic conditions resulted in losses in the second quarter. The company has seen higher churn and lower demand than it anticipated, with memberships at its locations falling from a year ago, Interim Chief Executive Officer David Tolley said in its quarterly results. WeWork’s management also warned that “as a result of our losses…which have been impacted by the recent increases in member churn…substantial doubt exists about the company’s ability to continue as a going concern.” WeWork raised billions of dollars from firms like SoftBank, its largest financial backer, but its growth stalled after investors raised concerns over its charismatic co-founder Adam Neumann’s unorthodox management style and his related-party transactions with the company. He was ousted in 2019 and under new management WeWork went public in 2021 through a merger with a special-purpose acquisition company.
