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WeWork launched a renegotiation of its office leases globally, testing its leverage against landlords that stand to lose if the embattled co-working space provider goes out of business, WSJ Pro Bankruptcy reported. WeWork’s current lease liabilities are “dramatically out of step with current market conditions,” interim Chief Executive David Tolley said Wednesday. WeWork held calls with landlords to inform them that it would be seeking concessions on its office leases, which account for more than two-thirds of its operating expenses. The company last month raised doubts that it would continue as a going concern, citing its dwindling cash and market headwinds. Once among the world’s most valuable startups at $47 billion, WeWork recently installed several directors with bankruptcy and restructuring experience to its board. Some of its major creditors have held preliminary talks among themselves to explore a bankruptcy filing for WeWork. For years, WeWork succeeded by taking out discount long-term leases from landlords and subletting them at a markup to entrepreneurs and small businesses. That model is now threatening the company’s existence as work-from-home continues to sap interest in flexible office space. WeWork said last month that its ability to negotiate concessions from landlords in the next few months will determine whether the business survives as it faces weaker-than-expected demand and higher member churn. If WeWork is able to renegotiate a sufficient number of its high-cost office leases and bring down its cost of rent, the company may not need to file for bankruptcy and it could avoid restructuring its debts. Since the end of 2019, WeWork has amended or canceled hundreds of its leases, resulting in an estimated reduction of $12.7 billion in fixed lease payments, according to securities filings.