- Tram Ho
Recently, The Guardian reported that WeWork expects to lay off at least 2,000 people, equivalent to 13% of the company’s employees this week. WeWork employees said they believe the cut will not stop there. Another source revealed that executives of the “broken horn unicorn” discussed cutting up to one third of the staff to minimize operating costs during the current difficult period.
In addition, WeWork staff also said that at the moment, they have hardly done anything and new projects have been postponed. For its part, the company refused to give any information related to the problem.
Last month, WeWork postponed the IPO plan after its prospectus showed a huge loss of $ 900 million in just the first 6 months of 2019. Besides, people also doubted about the ability to manage the company. of the leadership led by Adam Neumann.
Adam Neumann is the founder of WeWork.
Before the downhill without braking, WeWork was rated as the highest valued private company in the US with 527,000 tenants (members) worldwide. From $ 47 billion, the company’s valuation has now dropped to around $ 10 billion. Not long after, Adam Neumann announced his departure from the CEO chair after a lot of fuss.
Although WeWork’s co-founder and former CEO resigned, it still seemed to upset the company’s employees. The Guardian has collected many internal chats in which employees frequently share photos of Adam Neumann.
A mock-up of Neumann in the chat group of WeWork staff.
In addition to the former CEO, his wife, Rebekah Paltrow Neumann, was also unhappy with the staff. Rebekah used to be WeWork’s brand director and was instrumental in recruiting and launching new business ideas.
Rebekah Paltrow Neumann, wife of Adam Neumann.
Rebekah was the one who decided to open WeGrow, a private elementary school right inside WeWork’s headquarters. According to the Wall Street Journal, many employees lost their jobs here after Rebekah met them and disliked their energy. So far, WeGrow has been closed and Rebekah is banned from participating in the operation of the company’s board of directors.
WeWork’s practice is to invest in real estate in some of the world’s most expensive markets, to redesign and re-start the space for startups and freelancers who work there. short time. Users can pay rent each time or register a member.
An anonymous employee said: “The working environment here is very toxic. We have worked very hard for this company because we think we are contributing to something really big.” .
Some executives who invest money in WeWork (if the company IPOs) are likely to receive nothing and may even lose their jobs. One person shared: “I put cryptocurrency to invest here but it turned out to be a farce.”
An WeWork office.
Despite being evaluated as having potential and attracting many big customers like IBM or Microsoft, WeWork has lost money faster than the development speed. After investors began to query Neumann’s business model and management role, the company was forced to postpone its IPO with a valuation of 1/4.
WeWork expects to raise $ 4 billion after the IPO and can access a $ 6 billion loan. However, the postponement of the IPO has delayed these plans.
It is estimated that WeWork is “burning” 700 million USD each quarter. Last year, the company lost $ 1.6 billion and had $ 2.5 billion in cash as of June 30. At that rate, We (the parent company of WeWork) is expected to run out of money after the first quarter of 2020. But the Financial Times recently revealed that WeWork needs to receive a renewal before the end of November, otherwise they will run out of money to operate.
Recently, WeWork has taken steps to cut costs such as suspending new leases, selling a number of sub-businesses and private aircraft of Neumann.
Neumann (40) has earned about 700 million USD from his own shares in WeWork. Earlier this year, he was on Forbes’ list of world’s richest billionaires with a net worth of $ 4.1 billion. However, at the present time, the former CEO WeWork has lost the billionaire and is estimated to own only about $ 600 million.
Source : Trí Thức Trẻ/Tổng hợp