WeWork is laying the hammer down.
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The office-sharing company is planning to lay off 4,000 employees, or 30 percent of its staff, as part of its turnaround plan, the Financial Times reports.
The plan, according to the FT, was put in place by the Japanese tech giant SoftBank, which on Tuesday agreed to provide $5 billion in financing and a tender offer of up to $3 billion for existing shareholders, in addition to accelerating an existing $1.5 billion funding commitment. In return, SoftBank will receive an 80 percent stake in WeWork at a valuation of about $8 billion – well below the $47 billion valuation it invested at in January.
WeWork did not immediately respond to FOX Business’ request for comment.
As part of Tuesday's deal, SoftBank Chief Operating Officer Marcelo Claure was named executive chairman of WeWork's board. Founder and non-executive chairman Adam Neumann was named a board observer and gave up control of his shares to the board. Neumann will receive as much as $1.7 billion as he exits, The Wall Street Journal reported on Tuesday.