Japanese e-commerce big Rakuten has determined to not renew its contract with WeWork when it expires subsequent month, in keeping with a report within the Japan Times. Rakuten had leased about 700 desks in Tokyo, however is now planning to maneuver workers from its fintech division into its personal new places of work.
Both WeWork and Rakuten declined to remark to TechCrunch.
Tokyo can also be the headquarters of WeWork’s greatest investor SoftBank, which took possession of the coworking startup final October as a part of a bailout deal after considerations about WeWork’s monetary stability and the habits of co-founder and former chief govt officer Adam Neumann led to the postponement of its IPO.
Due partially to its shut relationship with SoftBank, WeWork has a excessive variety of shoppers in Japan, however the Japan Times stories that the COVID-19 pandemic prompted occupancy to drop by about 60%.
Despite its troubles, SoftBank Group chief working officer Marcelo Claure, who took over as WeWork’s chairman after Neumann’s resignation, informed the Financial Times earlier this month that the corporate is on track to succeed in working profitability by the tip of subsequent yr, thanks partially to aggressive cost-cutting measures.
He additionally stated that regardless that revenues had been flat through the second quarter as a result of many tenants terminated their leases or stopped paying lease, some corporations have leased WeWork areas to function satellite tv for pc places of work near the place their workers stay as they proceed to earn a living from home.
WeWork’s chairman says it expects to have constructive money move in 2021