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WeWork losses double to $1.3bn as SoftBank struggles to stem spending

Olivia Rudgard
A visitor walks through the entrance to the WeWork co-working office space, operated by the parent company We Co., on Eastcheap in London, U.K. - Bloomberg

WeWork's losses more than doubled to $1.3bn (£970m) in the third quarter of the year, the co-working company has revealed. 

The office space company, which is recovering from a botched attempt to float on the public markets, failed to stem its losses despite breakneck growth, adding more than 100,000 new desks to make a record total of 719,000.

Gross profit - the profitability of its core business - rose from $454m to $808m, but net losses were up from $497m in the third quarter of last year. 

SoftBank, which gained control of the company last month after the departure of founder and former chief executive Adam Neumann, is expected to make thousands of job cuts. 

Flotation plans announced earlier this year were abandoned in September after investors raised concerns about Mr Neumann's financial management of the company, including his personal spending. 

He received an exit package worth $1.7bn as part of the SoftBank takeover, a deal which reportedly sparked resentment from employees of the company.

WeWork's new managers are now expected to focus on developing the profitable parts of the business, as well as selling assets and cutting jobs. 

The company, which was valued at $47bn in January, was valued at $8bn by the SoftBank deal, less than the total amount invested in it so far. SoftBank alone has invested more than $10bn in the company.