HomeTop Global NewsWeWork Emerges From Bankruptcy, John Santora Takes Over as CEO

WeWork Emerges From Bankruptcy, John Santora Takes Over as CEO

Coworking spaces provider WeWork emerged from bankruptcy on Tuesday after completing its global restructuring process. The company announced on the same day that Cushman & Wakefield executive John Santora will take over as its new CEO.

 WeWork filed for bankruptcy in November after accumulating substantial debt due to expensive leases and low occupancy. The company then transformed its real estate portfolio, “successfully renegotiating” over 190 leases while also exiting 170 locations branded as “unprofitable.” As a result, its annual rent and tenancy expenses were lowered by $800 million, while WeWork estimates that its total future rent expenses went down by more than $12 billion.

Additionally, WeWork transferred equity to real estate tech firm Yardi Systems, which will now hold a 60% stake in the company and a group of lenders.

“I firmly believe that flexible work is no longer just an option, but rather a strategic imperative for companies wanting to maximize the efficiency of their real estate footprint, as well as their dynamic workforce,” Santora said in a statement shared by WeWork. “While there is much work to do, with these supportive, structural trends and a restructured organization in place, I could not be more confident in our future, and I am energized and excited by the challenge that lies ahead.”

Founded in 2010, WeWork was once among the most promising startups in the U.S., being valued at $47 billion at one point. However, doubts about the company’s ability to turn a profit, as well as other issues, caused it to fail in its initial public offering (IPO) in 2019. WeWork became a public company in 2021 through a special-purpose acquisition company. By 2023, the company’s shares dropped below $1 per share and was valued at $360.9 million.

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