WeWork to divest all non-core businesses

WeWork to divest all non-core businesses

FILE PHOTO: WeWork offices in San Francisco
FILE PHOTO: A WeWork logo is seen at a WeWork office in San Francisco, California, U.S. September 30, 2019. REUTERS/Kate Munsch

REUTERS: The We Company, owner of office-space sharing company WeWork, disclosed on Friday (Nov 8) it will divest all non-core businesses and reduce headcount across its ventures as part of a 90-day plan.

In an investor presentation dated Oct 11, but made public on Friday, the company said the non-core businesses being divested include Meetup, The Wing, and Space IQ.

The company which said it had reached 580,000 memberships as of third quarter, excluding India, expects the job cuts to occur across its ventures, general & administrative, and growth-related functions.

WeWork in September withdrew its initial public offering after the SoftBank-backed startup ousted founder Adam Neumann as its chief executive officer.

The company had failed to excite investors who raised concerns about its burgeoning losses and a business model that involves taking long-term leases and renting out spaces for a short term.

The company said on Friday it would have "proven executives" in its membership-focused, subscription-based businesses.

WeWork will now focus on its enterprise customers, instead of small and mid-sized businesses which include start-ups.

Source: Reuters/nh

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