WeWork targets operating profit by end of 2026 as CEO pushes brand reset

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WeWork targets profit by 2026

Highlights

WeWork eliminated $4bn in debt, exited 170 locations, renegotiated 190 leases, and targets operating profit by end of 2026 after generating almost $2.3bn in 2023 sales.
WeWork maintains annual global capital expenditure of $80mn and reports global occupancy at just under 80 per cent, up from 63–64 per cent previously.
Forty-seven of the Fortune 100 use WeWork globally while management agreements and revenue-sharing with landlords are reducing long-term lease risks amid expanding flexible office demand.

Restructuring plan and operating targets

As reported by Financial Times, Santora is completing a restructuring that follows WeWork’s 2023 Chapter 11 bankruptcy, including the elimination of $4bn in debt, the exit from 170 unprofitable locations and the renegotiation of 190 leases. He says his role is to bring credibility and discipline to a company long associated with aggressive spending, informal workplace culture and the failed expansion that derailed its earlier growth story.

WeWork generated almost $2.3bn in sales last year and Santora says the group expects to make an operating profit by the end of 2026 while continuing to invest about $80mn a year in global capital expenditure. He also says there are no plans to take the company public, arguing that public market demands can pull a chief executive away from clients and staff.

Santora, who spent 47 years at Cushman & Wakefield and rose to chief operating officer, took over with a mandate to mature the brand rather than preserve its earlier image. He says WeWork is now a grown-up company and points to higher occupancy, now just under 80 per cent globally, compared with 63 or 64 per cent when he arrived.

Flexible office demand supports recovery

The executive says the flexible workspace market is expanding in cities including New York and London, even as some investors worry about oversupply and the health of smaller business tenants. WeWork says 47 of the Fortune 100 use its spaces globally, often as an entry point into new markets before committing to longer-term leases.

Santora argues that flexibility is becoming more valuable as companies manage uncertainty over headcount, expansion and the effect of AI on staffing. He says the group currently hosts 220 AI companies and has also introduced management agreements and revenue-sharing structures with landlords to reduce the risks tied to long-term leases.

He adds that post-pandemic office demand has also supported the business because companies calling employees back often need space quickly. While premium developers are increasing their own flexible office offerings, Santora says that trend validates demand for the model and reinforces WeWork’s position in the sector.

Our earlier article looked at a broader wave of CEO succession at major U.S. companies, where boards are turning to long-serving, operations-focused insiders to lead the next phase. It noted that while these “execution” leaders can strengthen discipline and day-to-day performance, investors will ultimately judge them on big strategic calls such as capital allocation, innovation, and portfolio decisions.

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