Troubled WeWork may soon have fewer workers, perhaps a third fewer.
After pullings it's initial public offering amid multiple controversies, the workspace company is expected to cut about 500 of its 1,500 employees according to The Information. The workers expected to be eliminated include product managers, engineers and data scientists.
It has been a wild ride for WeWork employees and investors in recent weeks. The company was forced to scrap its highly anticipated IPO after corporate governance issues arose connected to then CEO Adam Neumann. He was forced to resign amid criticism of selling insider shares ahead of the IPO, as well as lavish spending and alleged questionable personal behavior noted by The Wall Street Journal.
As the company unraveled, so did its valuation which dropped to around $10 billion from an initial nearly $50 billion, according to reports.
Following the implode, FOX Business reported that bankers connected with the company were digging into the books in hopes to salvage the company or perhaps find more troubles.
People with direct knowledge say JP Morgan and a number of top real estate companies are now scouring WeWork’s balance sheet, looking to slash costs, including reducing the outfit’s workforce, and scaling back its growth in leasing properties as they attempt to determine if WeWork’s business model can survive over the next year.
WeWork has already grounded the now infamous company jet and put it up for sale, according to reports. Wall Street analysts say without an infusion of cash, WeWork could run out of money in the coming months, a victim of rapid growth and poor expense management and corporate governance, as reported by FOX Business' Charle Gasparino.