Here is the current media round up - it seems that things are about to unravel very quickly - We's bonds took a major hit today - it sure sees like the end to me... Sit tight peeps...
WeWork is planning to lay off thousands of people — up to 25% of its employees — as its new CEOs focus on the core business
https://www.businessinsider.com/wework-plans-thousands-of-job-cuts-shelving-initial-public-offering-2019-10
Becky Peterson and Meghan Morris 2 hours ago
WeWork is planning to lay off between 10 and 25% of its workforce, a source familiar with the situation told Business Insider.
The cuts come as new CEOs Artie Minson and Sebastian Gunningham try to focus on WeWork's core business after a tumultuous lead-up to a shelved initial public offering.
WeWork executives haven't yet finalized the specific cuts, but the numbers will be "in the thousands" — though less than the 3,000 to 5,000 layoffs that had been laid out in earlier media reports, the source said.
WeWork expected to announce major layoffs
https://techcrunch.com/2019/10/03/wework-layoffs/
Kate Clark@kateclarktweets / 2:30 pm PDT • October 3, 2019
WeWork, the co-working business once valued at $47 billion, is expected to announce significant layoffs this month, Bloomberg reports. This follows reports the company was looking to slash as many as 5,000 roles, or one-third of its workforce.
Layoffs are a natural next step for the business as it aims to carve out a clear path to profitability, now a requisite for a 2020 IPO. To float at any point in the future, after all, WeWork must prove elevating “the world’s consciousness” will eventually lead to profits.
WeWork executives told staff today they expect layoffs to take place as soon as this month & that they'll be handled as "humanely" as possible. New w/
@ellenhuet
https://twitter.com/GillianTan/status/1179864325051310081
Minson and Gunningham are also looking to sell some of the companies WeWork purchased in recent years, as well as the Gulfstream G650 the company bought last year for $60 million
That is just obscene.
https://news.ycombinator.com/item?id=21152421
Running the numbers here. WeWork has 12.500 employees with 500 locations. That means on average 25 employees per location. That sounds absurd for workspace management, especially since construction / renovations / cleaning are most likely outsourced.
Let's cut them some slack and assume that half the workforce is focused on expansion (6250 employees) and that one in 25 are secretarial or HR (i.e. not related to daily operations of a workspace). That STILL means >10 workers per location full time.
No wonder the financials don't add up.