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Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Lost $ 1.25 billion in revenue of $ 934 million

Lost $ 1.25 billion in revenue of $ 934 million



Corp. CEO Masayoshi Son spoke during a joint announcement with Toyota Motor Corp. to launch a new venture for mobility services development in Tokyo, Japan, October 04, 2018

Alessandro Di Ciommo | NurPhoto | Getty Images

WeWork's losses continued to grow in the third quarter, reflecting the rapid growth strategy taken by deposed CEO Adam Neumann, according to a slide deck the company presented to investors.

The deck showed losses of $ 1

.25 billion (unadjusted), exceeding 150% of the loss of $ 497 million in the same period a year earlier. Revenue nearly doubled to $ 934 million from $ 482 million. The company also said that employment has dropped to 79%, its lowest value since mid-2017, as a result of the rapid construction of new space.

WeWork added 115,000 new bureaus in the quarter, which the company called a record, According to a report last week by real estate firm CBRE, WeWork represented 69% of US quarterly leasing contracts in the third quarter, the good tenant of nine of the 10 largest markets for flexible space growth.

WeWork, which is retiring. The IPO in September and replaced Neumann before taking a $ 5 billion bailout from SoftBank, showed solid business growth to 264,000 (up from 214,000 at the end of the previous year) and generated $ 4.3 billion in revenue. A big part of SoftBank's strategy, which now controls 80% of the company, is to focus on larger enterprise customers.

The company would have exhausted the money by the end of October if it had not received the new SoftBank financing, CNBC reported earlier. WeWork has been experiencing a dispute about net capital since it drew an IPO when investors were exhausted by the huge losses and unusual accounting and business arrangements undertaken by Neumann and his lieutenants.

Since then, the company has discarded a non-core business and reportedly speak to a number of candidates to replace Neumann permanently, including T-Mobile CEO John Lehrenre.

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