WeWork’s stock drops following rumors that the company is declaring bankruptcy

WeWork‘s shares, a troubled office-sharing company, fell sharply on Wednesday as a result of rumors that it may declare bankruptcy as soon as next week.

In the first hours of trading in New York, its shares dropped by over 50%.

The company used to be thought of as the office’s future. However, it has been beset by issues, such as the co-founder’s departure and a botched attempt to offer shares to the public in 2019.

As more people began working from home as a result of the epidemic, the company was also severely impacted.

The pandemic struck a few months after the listing fiasco, igniting a revolution in remote work and subjecting WeWork to scathing public criticism from tenants trying to get out of their contracts.

However, the business continued to run as executives trimmed staff, canceled or changed hundreds of leases, and sold off subsidiary firms in an attempt to stop the company’s losses before its cash flow ran out.

In 2021, WeWork eventually made its New York Stock Exchange debut at a somewhat reduced valuation.

Tens of billions of dollars have been invested in WeWork by the Japanese giant SoftBank despite the company’s continuous losses.