WeWork to open two new locations in Singapore amid cost-cutting drive

Business

FILE PHOTO: A WeWork logo is pictured in the Manhattan borough of New York City, New York, U.S., October 4, 2019. REUTERS/Carlo Allegri/File Photo

(Reuters) – Office-sharing startup WeWork on Thursday said it will open two new locations in Singapore this year, even as its seeks a $1 billion lifeline from its biggest-backer Softbank Group Corp (9984.T) to progress a major restructuring.

The New York-based startup, which had to abandon an initial public offering last week because of investor concerns about how it was valued and its business model, will open new locations at 83 Clemenceau Avenue and 30 Prinsep Street, it said in a statement.

The surprise plan to boost its footprint in the city state contrasts with reports of its parent, The We Company, considering a curb on expansion plans in China as part of the company’s new emphasis on controlling costs.

The loss-making start-up is looking to trim its workforce and slow expansion to preserve cash as it seeks alternative sources of funding, sources have told Reuters.

WeWork currently has 25 locations across Southeast Asia.

Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Aditya Soni

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