Embattled commercial office-sharing company WeWork is cutting jobs and exiting businesses as it implements a 90-day improvement plan following its failed attempt to go public.
According to a 50-page presentation released Friday, WeWork will divest in “non-core” business by selling Meetup, an online event organizer, and its stake in The Wing, a woman-focused co-working company.
Before WeWork’s planned IPO, shelved in September, it was privately valued at $47 billion. Investors raised questions about its finances once detailed reports were filed with the Securities and Exchange Commission, however, and the startup's valuation plummeted to $8 billion.
Co-founder Adam Neumann relinquished the role of CEO afterward, and his duties were taken over by Sebastian Gunningham and Artie Minson.
SoftBank, a large investor that threw the company a financial lifeline and installed new management last month, subsequently announced a cost-savings plan that included about 4,000 layoffs.