WeWork isn’t working right now — but it’s not the only big brand in trouble that is backed by Japanese conglomerate Softbank and its Vision Fund investment arm.
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The We Company, owner of the shared-workspace provider, faced serious challenges in the last few weeks to its business model, which relies on a mix of long-term liabilities and short-term revenue. It also faced criticism of its governance standards, as founder Adam Neumann wielded 20 times the voting power of ordinary shareholders.
Last month, it withdrew its initial public offering, and while it raised a whopping $12 billion gearing up to its now-defunct IPO, recent reports say it could lay off 4,000 workers.
Here are some other big names that are laying off employees and facing business dilemmas:
The company said in October it would lay off 350 employees to streamline its workflow. In July, the rideshare firm dismissed 400 workers, a third of its global marketing department.
"Days like today are tough for us all ... I will do everything we can to make certain that we won't need or have another day like this ahead of us," Uber Chief Executive Officer Dara Khosrowshahi told TechCrunch.
"We all have to play a part by establishing a new normal in how we work: identifying and eliminating duplicate work, upholding high standards for performance, giving direct feedback and taking action when expectations aren't being met, and eliminating the bureaucracy that tends to creep as companies grow."
While this highly funded, on-demand dog-walking service raised $300 million from the Vision Fund in 2018, it went on to lay off 54 people earlier this year, with reports citing growth, operational challenges and management issues as reasons.
This startup helps people lease cars from their smartphones. It raised more than $2 billion from investors like Ally Financial and BMW. Still, it plans to lay off 40 percent of its staff and is removing its chief financial officer, Tyler Painter.
With several SoftBank brands struggling, Chief Executive Officer Masayoshi Son said in an interview that he may turn his focus from startups to “companies with clearer pathways to profitability and public offerings.” On the horizon: burger chains and digital pharmacies.