As WeWork looks to reduce its costs and refocus, the co-working company’s two new co-CEOs reportedly committed in a message to workers to “strengthen our core business” following the ouster of Chief Executive Officer Adam Neumann. That process began by selling Neumann’s private airplane, Bloomberg reported.
We Co., WeWork’s parent, is selling the Gulfstream G650 that the company purchased in 2018 for Neumann’s use for meetings as well as travel per an unnamed source in the report. The company is also aiming to sell three businesses it acquired in recent years: Managed by Q, an office management startup; Meetup, an event organizing platform; and Conductor, a marketing company.
The report also noted that WeWork could resort to job cuts per one unnamed source. The co-working company would not comment on the outlet’s story. As it stands, WeWork is still looking for cash. The company’s initial public offering (IPO) was intended to provide the firm with $3 billion while enabling access to $6 billion more in a credit facility.
The offering, however, went up in smoke reportedly due to the criticism of the company’s governance, sinking forecasted value in the markets and quickly increasing losses. The tumult following the departure Neumann has probably moved the offering to 2020, per unnamed sources.
The IPO news comes as Endeavor Group Holdings Inc. pulled back its planned offering after reportedly having scaled it back earlier, while shares of Peloton fell on their inaugural trading day.
In other recent WeWork news, SoftBank Group is reportedly planning to put an extra $1 billion or more into WeWork via a renegotiated warrant agreement. The warrant agreement was reportedly struck before the stalled IPO and falling valuations.
According to unnamed sources cited in a previous report, SoftBank wants to change the warrant agreement so it will get a bigger slice of WeWork’s stock at a reduced price. The deal renegotiation is just one of several options being considered by the Japanese conglomerate, and discussion are still reportedly in the early stages per the sources.