WeWork, which dropped into bankruptcy last November, has gone through a contentious negotiation process with its landlords that started then and has continued into 2024.
The work appears to have paid off in a big way for the flex office company. In January, WeWork had managed to cut 16% of its long-term lease costs, or $3.7 billion, through lease rejections — which U.S. bankruptcy rules allow — or amendments.
And now, the company says that it has "determined a path forward" at 90% of the spaces it leases through either amended leases, new management agreements, or the bankruptcy lease rejection process. That represents a claimed $8 billion in future rent obligations, or a 40% reduction, an estimate "based on a combination of executed agreements, exits and agreements in principle across wholly-owned portfolio."
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