WeWork Inc. (WE.N) announced it will convert nearly $1 billion of key investor SoftBank Group Corp.’s (9984.T) unsecured notes into equity to reorganize its financing.
Company shares climbed 2.2% to $1 before the bell.
The firm, which offers workstations, private offices, and customizable floors, has benefited from a pandemic-driven move to flexible work outside traditional offices. Still, it is now preparing for an economic slowdown.
WeWork anticipated dismal current-quarter sales last month, reflecting significant layoffs as firms cut their real estate footprint.
After exiting 40 unsuccessful U.S. sites last year owing to high expenditures and a strong U.S. currency, the New York-based firm intended to cut 300 jobs worldwide in January.