WeWork Restructuring Presentation Deck
Methodology & Key Assumptions
The assumed savings from portfolio optimization efforts are based upon a location level build. The Plan is then rolled up into
selected key markets for strategic planning purposes.
Based upon the Company's building level forecast
Continue to
adjust based
upon feedback
from lease
negotiations
Start from FY2023 forecast
Determine what locations to keep
or exit
Estimate amount of member
retention from the exits
Go-forward portfolio
Apply assumptions on
membership growth and churn
and ARPMs
Adjust cost structure based upon
reduced footprint
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Exit all "Never Keeps"
Renegotiate leases and achieve rent savings at other locations
Exit any locations that fall below margin thresholds that vary by market
Building level estimated retention rates are used for certain exits
All other exits assume a 25% member retention rate subject to occupancy caps by key
market (long-term cap estimated at 85%)
The assumptions above have the most material impact with regards to what the business will
look like going forward
Assumes no new locations
Membership growth to offset churn and rise to target occupancy levels
ARPMs grow at approximately 2.5% per annum to offset cost increases
Right-size SG&A over time to reflect the reduced footprint
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