WeWork wins U.S. government contract as pandemic delays return-to-office plans (updated)

Wework

26/08/2021 14:56

(Adds contract details, background)
    Aug 26 (Reuters) - Office-sharing startup WeWork said on
Thursday it had won a U.S. federal contract to provide flexible
working options to government employees, as a spike in COVID-19
cases prompts employers to reconsider a complete return to
offices.
    The SoftBank Group Corp-backed  9984.T  company did not
disclose the value of the contract, which was awarded by the
U.S. General Services Administration to WeWork and four other
contractors.  urn:newsml:reuters.com:*:nBwb5gyd9a 
    The flexible co-working services contract is for a period of
one year, with several renewal options, WeWork said. 
    The pandemic has marked a shift away from a traditional
stand-alone workplace and towards a more hybrid model, where
employees have the flexibility to work from offices, co-working
spaces, public areas and home.
    The fast-spreading Delta variant of the coronavirus and the
subsequent tightening of curbs in some places have compounded
worries for office space providers, as businesses opt for
shorter leases and many employees continue to work remotely.
    Earlier this month, WeWork reported a dip in second-quarter
revenue from the prior three months, as the Delta variant stoked
a slower-than-expected recovery for the first half of the year.
 urn:newsml:reuters.com:*:nL4N2PK2ZO
    Numerous U.S. federal agencies last month mandated masks at
federal buildings in COVID-19 hot spots in line with
instructions issued by the White House.  urn:newsml:reuters.com:*:nL1N2P41IN
    WeWork in March agreed to go public through a merger with
BowX Acquisition Corp  BOWX.O , a special purpose acquisition
company, in a deal that valued it at $9 billion.  urn:newsml:reuters.com:*:nL4N2LO2G8

 (Reporting by Sanjana Shivdas in Bengaluru; Editing by
Ramakrishnan M.)
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