WeWork targets profits and positive cash flow in 2021

WeWork executive chairman Marcelo Claure said the flex office space giant is expecting to have a positive cash flow in 2021 a year ahead of schedule, the Financial Times reported. Claure said in an interview with the FT that WeWork has cut its workforce by more than 8,000 people, renegotiated leases and sold off assets. The company has set a target of reaching operating profitability by the end of the year. He said the company had seen strong demand for flexible office space as a result of the coronavirus pandemic, with businesses looking for flex space satellite offices closer to home. Since autumn last year, WeWork has been looking to see how it can make its office portfolio the right size to become more profitable, including exiting some leases. Knight Frank is reviewing the company’s footprint.  The flex office space provider is fighting to turn its fortunes around after making a ¥720.8bn (£5.6bn) loss for its major backer, SoftBank, over the year to 31 March. SoftBank invested a total of $10.3bn (£8.5bn) into WeWork over the course of the year. Last week, EG revealed that WeWork had scrapped a deal with Boultbee Brooks Real Estate to take up the entire 50,000 sq ft Hyphen building in Manchester, a deal which was announced last April. The company has walked away from the deal as part of its ongoing global review to cut its real estate portfolio. To send feedback, e-mail lucy.alderson@egi.co.uk or tweet @LucyAJourno or @estatesgazette