Business

WeWork to close Russia offices days after CEO said exit unlikely

WeWork said it will shutter its offices in Russia in response to the invasion of Ukraine — just days after the embattled real estate firm’s boss said an exit was unlikely while touting the company’s success in the country.

“We unequivocally condemn the unprovoked and unjust war that is bringing senseless devastation to the people of Ukraine,” WeWork said in a statement. “Together with our colleagues, members, and landlords, we have been finalizing solutions to divest operations in Russia and we’ve suspended all expansion plans for the business in this region.”

WeWork operates four office locations in Russia — a small portion of its more than 750 locations worldwide. But WeWork CEO Sandeep Mathrani recently told Bloomberg that those four locations were successful, generating annual topline revenue of about $10 million.

During the same Feb. 28 interview, Mathrani suggested WeWork’s exit from Russia was unlikely despite the invasion — noting the company planned to stay active in the country.

“I don’t think so,” Mathrani said when asked about the possibility of an exit. “Like I said, our assets do incredibly well. We hope for a resolution of the conflict and hopefully we can continue to do business in Moscow.”

WeWork CEO Sandeep Mathrani
WeWork CEO Sandeep Mathrani previously said the Russia offices perform well. Bloomberg

WeWork is the latest US firm to cut ties with Russia as the Kremlin escalates military operations in Ukraine — including a bombardment of major cities that has resulted in mounting civilian casualties.

Companies across various sectors, ranging from tech giants like Apple and Google to oil firms like Shell to retailers like Ikea, are among those that have limited their operations in Russia or exited the country entirely.

“We continue to focus on the safety of our colleagues and all those affected by the ongoing conflict,” WeWork added. “We stand in solidarity with Ukraine, and have a partnership with the UN Refugee Agency to support refugees fleeing in Eastern Europe, assist with aid and resources, and provide free space for those in immediate need.”