BREAKING NEWS

WeWork to divest all non-core businesses

WeWork to divest all non-core businesses
FILE PHOTO: A WeWork logo is seen at a WeWork office in San Francisco, California, U.S. September 30, 2019. REUTERS/Kate Munsch -
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Kate Munsch(Reuters)
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(Reuters) – The We Company, owner of office-space sharing company WeWork, disclosed on Friday 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. (https://we.co/2Ntb9cw)

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.

(Reporting by Manojna Maddipatla in Bengaluru; Editing by Shailesh Kuber)

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