WeWork names new executives, path to profitability by 2023

WeWork names new executives, path to profitability by 2023

Maurice Levy named interim CMO of WeWork as part of larger turnaround plan

Additionally, about 1,000 cleaning and maintenance jobs in the US and Canada are being outsourced to another firm that will contract the workers back to WeWork for the time being.

Claure said in a memo to employees earlier this week that the company will hold an all-hands meeting at 10 a.m. ET on Friday to address the changes slated for the company.

Finally, on November 18, 2019, Reuters reported that the New York State Attorney General is investigating WeWork, including whether WeWorks founder and former chief executive, Adam Neumann, indulged in self-dealing to enrich himself. Amid its failed IPO, the business functionally collapsed, requiring an additional $9.5 billion bailout from its largest investor, Softbank.

"The reduction in workforce is affecting approximately 2,400 employees globally, who will receive severance, continued benefits, and other forms of assistance to help with their career transition", added the New York-based WeWork. Resentment grew following a $1.7 billion payout to Neumann, whose controversial corporate governance practices contributed to skepticism in Wall Street about WeWork.

Job losses in the technology department further undercut WeWork's central claim that it is primarily a technology company, not just a real estate firm, and therefore merits a much higher valuation.

The company has 12,500 employees on June 30, and there are others who work for the affiliates.

Over the weekend, the WeWorkers Coalition raised a number of concerns regarding the future of the cleaning and maintenance employees who are being transferred on December 9, including what would happen to their stock options and employer's contribution to the 401 (k) retirement savings plans for 2019.

The staff in NY which offered six months severance release if they have been with the company for at least four years and four months of severance pay for anything under it, says a former employee. "WeWork's "growth at all costs" ethos meant they didn't have time or appropriate management to put in place the processes and organisational structures to enable their staff to efficiently service the business's relentless appetite for new locations", he said in an email.

WeWork faces a steep road to transform itself into a self-sustaining operation with a path toward profitability.

The company's losses are also continuing to mount, swelling to $1.25 billion in the third quarter, and it is burning through cash as it has committed to a big expansion in the number of sites.

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