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WeWork will try to renegotiate “just about all” of its rentals because it stares down staggering losses and rumors of drawing close chapter.

On a convention name with its landlords Wednesday morning, the suffering business actual property startup stated that its leasing prices stay too excessive.

“We’re taking rapid motion to completely repair our rigid and high-cost hire portfolio to reach the sustainable working style that we wish to serve our contributors for many years yet to come,” WeWork stated in a letter explaining the verdict. “Through addressing this fact now, we can proceed making an investment in and innovating our trade on behalf of our contributors.”

The corporate, which has misplaced $15 billion for the reason that finish of 2017, shall be renegotiating its rentals to permit for more cost effective rents and shall be exiting underperforming places, consistent with the letter.

The announcement provides to a tumultuous few months for the corporate, beginning with the resignation of former CEO Sandeep Mathrani in Would possibly. Mathrani have been tapped to show across the suffering corporate after founder Adam Neumann drove the corporate’s losses to staggering highs. Later that month, CFO Andre Fernandez give up after only a yr within the place.

In August, the corporate posted a dire-sounding submitting with the Securities and Trade Fee expressing “considerable doubt” about “the corporate’s skill to proceed as a going worry.” The corporate’s inventory misplaced just about one-fourth of its price following the submitting of that realize and its quarterly profits record, which was once launched at the identical day.

All the way through its upward enlargement trajectory, WeWork represented the way forward for the place of work to many. Traders have been having a bet that people and companies would make a selection to occupy WeWork’s places as an alternative of operating from a standard place of work development, favoring the corporate’s swish designs, communal areas and perks, reminiscent of beer and kombucha, to construct group.

Then again, because the company persevered to pour extra money into leasing and renovating masses of places globally, much less and no more cash got here into the corporate, and WeWork was once by no means in a position to make up for its oversized bills.

Its community continues to be massive, alternatively. Even because it prepares to near places, on the finish of June WeWork had 777 places globally, the similar quantity as a yr previous. Call for for its place of work area seems to be declining, even though, as far flung paintings stays a well-liked possibility for plenty of staff. In its most up-to-date profits record, the corporate reported occupancy and memberships had declined in the second one quarter from the primary quarter.

E mail Ben Verde