Adam Neumann, co-founder and CEO of WeWork, center, and Miguel McKelvey, co-founder and CCO of WeWork. Photographer: Misha Friedman/Bloomberg
As WeWork Cos. has grown to 200 buildings across the globe, the company said its increased size is helping cut costs for everyday needs like glass, wood flooring, aluminum and light fixtures. Early signs of financial improvement are encouraging for a co-working business that critics say is overvalued and spends with abandon.
Last year, the New York-based startup generated about $900 million in revenue, mostly from its main business of renting out desks and offices to small and large companies, said Artie Minson, WeWork’s president and chief financial officer. The company also reduced recurring costs on constructing and running offices, in part because it gets discounts for buying in bulk. “This is a business where scale matters,” Minson said. “We’re building global supply chain capabilities, which allows you, frankly, to build cheaper than anyone else out there—materially cheaper.”
WeWork isn’t required to report financial information to the public but agreed to provide select numbers in an interview with Bloomberg.