The future of WeWork is uncertain, according to the company.
"Substantial doubt exists" about WeWork's ability to continue to stay in business, due to the company's losses, projected cash needs, and increased member turnover, according to the company's second quarter earnings release.
WeWork management outlined a plan to improve the company's financial health, saying that its ability to stay in business is "contingent upon successful execution" over the next 12 months.
WeWork, which operates coworking spaces, said it will try to lower rent costs by to negotiating more favorable lease terms and increase revenue by reducing canceled memberships as part of its turnaround plan. The company will also attempt to raise more money by issuing debt or equity securities.
The company's stock plunged more than 20% in after-hours trading on Tuesday. Overall, WeWork's stock is down 85% since the start of this year.
This is a developing story. Check back here for details.
