WeWork is facing a hard time. The estimated losses of the company on the recent quarter havereached $1.25 billion. As per a financial document, the net loss during the same period in the previous year was only $497 million.
The company’s revenue was $482 million last year and has increased to $934 million in the current quarter. The company is trying to move forward after their disastrous IPO attempts and the dismissal of Adam Neumann, their CEO and co-founder. This financial update has come amidst all these attempts. It was in September that Neumann stepped out from the post of CEO. There was a requirement of fresh capital injection for the money-losing firm. The firm was going through such a bad stage that it could not even lay off its staffers as they wanted, because they could not afford the payment of severance.
Soft Bank had taken up nearly 80% of the ownership of the company as a deal of pumping $5 billion in the previous month. An investment of $1.5 billion in equity has also been accelerated by Soft Bank which will be due by next year. We Work has been valued at $8 billion under this package. The chief operating officer of Soft Bank, Marcelo Claure has been named the executive chairman as per this deal. News has also said that Soft Bank is in search of a chief executive for leading We Work. After Neumann has moved out of position, Artie Minson, the CFO and co-president and Sebastian Gunningham, the vice chairman has been appointed as the co-CEOs.
Claure has said in an email that he did not wish to emphasize that the business was secure. A five-year plan is being finalized by the company and he said that it will be presented to the company’s board on the 19 of November. The firm also has plans to sell off most of their startups which it has acquired over the past years and Claure has said that the layoff will be completed within next few weeks.