On Thursday, the office sharing space start-up, We Work reported a net loss of $2.06 billion at the end of the first quarter.
The company stated that after the impact the corona virus pandemic had on it, it had just started to recover its business. Due to the pandemic restrictions the company’s operational costs increased and their occupancy had to be reduced.
However, once restrictions started to ease up and the company’s business started getting back on track, it was hit with a charge of $494 million for restructuring and an impairment charge of $299 million, just as it was about to go public about the merger with a blank-check firm.
In a statement the company said, “We Work continued to see encouraging signs of recovery with sales activity, a critical indicator of future revenue, ramping over the first quarter, as the company achieved gross desk sales of 24 k in Jan, 25K in Feb and 38 K in March.”
As compared to the fourth quarter, the company also reported an increase in its occupancy by 3% in the first quarter.
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