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"The members of staff worked out of room 404"
What does 'out of' mean in the sentence?
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That's where they worked, or at least where their desks were.
Working "out of" a certain place means that spot was used as a work site. It was their headquarters.
It's a common expression:
He worked out of his garage.
She works out of her home
The staff worked out of room 404.