WeWork is closing offices in Russia after the CEO said an exit was unlikely

WeWork said it would close its offices in Russia in response to the invasion of Ukraine – just days after the boss of the embattled real estate firm 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 worked out solutions to sell activities in Russia and 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 are doing well, generating about $10 million in annual revenue.

During the same interview on February 28, Mathrani hinted that WeWork’s exit from Russia was unlikely despite the invasion – noting that the company plans to remain active in the country.

“I don’t think so,” Mathrani said when asked about the possibility of an exit. “Like I said, our assets are doing incredibly well. We hope that the conflict will be resolved and that we can continue our business in Moscow.”

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

Companies from various sectors, from tech giants like Apple and Google to oil companies like Shell and retailers like Ikea, are among those that have restricted their operations in Russia or left the country altogether.

“We remain focused on the safety of our colleagues and everyone affected by the ongoing conflict,” WeWork added. “We stand in solidarity with Ukraine and have partnered with the UN Refugee Agency to support refugees fleeing to Eastern Europe, providing assistance and resources, and providing space for those in immediate need.”