Japanese conglomerate SoftBank is the most important investor of The We Firm, WeWork’s guardian firm.
WeWork and SoftBank didn’t instantly reply to a request for remark.
The choice to maneuver ahead with SoftBank caps off a dramatic two-month interval for The We Firm. After submitting paperwork for a extremely anticipated IPO in August, the corporate confronted a barrage of criticisms for the way it operated: It had staggering losses, no ladies on its board and CEO Adam Neumann had unchecked energy and quite a few potential conflicts of curiosity.
Whereas the We Firm revised its paperwork to appease traders, it was too little, too late. The corporate was pressured to postpone its IPO final month.
Since then, The We Firm is claimed to be targeted on belt-tightening. A number of of the startups it acquired are reportedly on the market. It’s reportedly gearing up for mass layoffs. The corporate additionally mentioned it might stop working its college, WeGrow, after this college yr.
If that is not sufficient, a few of WeWork’s widespread cellphone cubicles had been pulled out of some rental workplaces because of “potentially elevated levels of formaldehyde.”