(Reuters) – WeWork Inc, a flexible workspace provider reported a smaller loss for the fourth quarter on Friday. This was due to lower costs and decreased demand for offices from businesses switching to a hybrid approach of working.

Companies have been forced to allow employees to work in places outside of their office due to the COVID-19 epidemic. This has helped workspace providers like WeWork which provides workstations and private offices as well as customized floors.

Softbank’s WeWork business is also recovering due to the lifting of COVID-19 limits. Work-from-home arrangements last summer, which affected WeWork’s profitability and reduced occupancy, have weighed on WeWork.

WeWork had also benefited from the switch to hybrid work models, as did London-listed competitor IWG. However, IWG reported a slightly smaller loss Tuesday.

After a nearly two-year battle, WeWork went public last October. Chief executive Sandeep Mathrani helped to reduce costs through exiting non-profitable leases, and the sale of non-core assets.

Mathrani took the reins as top boss of the company in the early 2020s and stated the company is on track to become profitable.

The company leases property and long-term leasing obligations are closely monitored metric. As a result, they fell 11% to $17.93 Billion as of December 31.

The fourth quarter saw 87,000 new desk sales, up from 84,000 the previous quarter.

From $1.17 Billion a year prior, the net loss for Dec. 31 was $803 Million.