Japanese e-commerce giant Rakuten has actually decided not to restore its agreement with WeWork when it expires next month , according to a report in the Japan Times. Rakuten had rented about 700 desks in Tokyo, but is now planning to move employees from its fintech department into its own new offices. Both WeWork and Rakuten declined to comment to TechCrunch. Tokyo is also the headquarters of WeWork’s most significant investor SoftBank, which took ownership of the coworking start-up last October as part of a bailout deal after concerns about WeWork’s monetary stability and the habits of co-founder and former president Adam Neumann resulted in the post ponement of its IPO. Due in part to its close relationship with SoftBank
, WeWork has a high number of clients in Japan, but the Japan Times reports that the COVID-19 pandemic triggered tenancy to come by about 60 %. Regardless of its problems, SoftBank Group chief running officer Marcelo
Claure, who took over as WeWork’s chairman after Neumann’s resignation, told the Financial Times previously this month that the business is on target to reach running profitability by the end of next year, thanks in part to aggressive cost-cutting measures. He likewise stated that despite the fact that profits were flat during the second quarter because many renters ended their leases or stopped paying rent, some business have actually leased WeWork areas to serve as satellite offices close to where their employees live as they continue to work from home. Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.