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WeWork is reportedly unlikely to go public this year — and thousands of layoffs could be coming

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WeWork is reportedly unlikely to go public this year — and thousands of layoffs could be coming

Category : entrepreneur

  • WeWork announced on Tuesday that its cofounder Adam Neumann was stepping down as CEO, following a disastrous month in which the company postponed its plans to go public.
  • The Wall Street Journal reported on Tuesday that WeWork was unlikely to still go public this year, citing sources familiar with the matter.
  • WeWork’s new co-CEOs, Artie Minson and Sebastian Gunningham, are also reportedly considering “a few thousand” layoffs in the coming months to cut costs at the company.
  • Read all of Business Insider’s WeWork coverage here.

The embattled coworking company WeWork is reportedly unlikely to go public this year, after a disastrous month that came to a head on Tuesday when the company replaced its CEO.

Sources familiar with the matter told The Wall Street Journal on Tuesday that the company probably wouldn’t publicly list its shares this year as planned.

WeWork filed paperwork in August for an initial public offering, kicking off a swift fall from grace in which the company once privately valued at $47 billion was said to be seeking a public valuation as low as $10 billion.

Since its IPO paperwork was released, the company’s massive losses and CEO Adam Neumann’s questionable business dealings, drug and alcohol use, and conflicts of interest have been scrutinized. WeWork made some changes, then announced earlier this month that it was delaying its IPO but still expected to list its shares by the end of the year.

Then on Tuesday, Neumann said the scrutiny had become a “significant distraction” amid WeWork’s IPO plans and announced he was stepping down as CEO in the company’s “best interest.”

Read more:WeWork’s had a terrible month, and now CEO Adam Neumann is stepping down — here’s everything that has happened since the embattled company filed to go public

The Journal report details Neumann’s final days as the head of WeWork. While some on the company’s board of directors pushed to oust Neumann, the WeWork cofounder had the support of many “as of Friday and into the weekend,” according to The Journal. But by Sunday, some of Neumann’s biggest allies on the board had reportedly told him they were pushing for his departure, echoing concerns from SoftBank, the Japanese firm that has injected billions into WeWork.

Replacing Neumann are two WeWork executives who will serve as co-CEOs, Sebastian Gunningham and Artie Minson. The Journal reported that they were considering “a few thousand” layoffs at WeWork to help cut costs ahead of an IPO. WeWork declined to comment.

According to The Journal, in an email to staff on Tuesday, the co-CEOs said they would “closely review all aspects” of the company and told employees to expect “difficult decisions ahead.”

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Sammy Singh

Global VC, Founder, and entrepreneur extraordinaire as featured in Inc. Magazine, Bloomberg, and Forbes. Sammy Singh is a graduate of UCLA and Wharton School of Business as well as a former student of Loyola University of Chicago. Sammy is best known as a renowned financial technology global entrepreneur and has founded over 26 different firms across industry and all over the world. He is a venture capitalist,a TV/ Film actor, tax specialist, and marketing solutions strategist. Connect with Sammy Singh on social media below! www.linkedin.com/in/cfo www.instagram.com/champagnegqpapi www.facebook.com/officialsammysingh www.twitter.com/cxosynergy www.medium.com/@sammysingh www.crunchbase.com/sammysingh

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