Embattled office-sharing firm WeWork on Tuesday warned US regulators that it is worried about its survival.
Citing financial losses, cash needs, and a drop in memberships, WeWork said in a filing with the Securities and Exchange Commission (SEC) that "substantial doubt exists about the company's ability to continue as a going concern."
After the announcement, shares of WeWork, the once globally hyped office space sharing company, plunged by close to 24% in extended trading in New York.
Trouble for WeWork:
The company has been in trouble since Neumann's forced departure in late 2019 following WeWork's failed IPO, in which the company's valuation fell from $47 billion to less than $10 billion.
WeWork has lost billions of dollars during the first six months of this year, with macroeconomic conditions weakening demand for its shared office spaces, the company told regulators.
WeWork, which is backed by Japanese tech giant Softbank, was hit hard by the pandemic as social distancing rules drove people to work from home.
The company had been a celebrated star in the sharing economy that put a mammoth footprint in the commercial real estate of major cities around the globe.