WeWork released Friday a “90-day game plan” that details sweeping changes to its businesses, including a divestiture of all “non-core businesses” and a reduction in headcount.
The changes are detailed in a nearly 50-page presentation, which was first put together in October as part of a pitch to investors, but was made public on Friday.
WeWork “90-day game plan”
WeWork is going to divest several ventures, including The Wing, Managed by Q, Meetup, Space IQ, Teem, Wave Garden and Conductor. The company said that job cuts will come throughout the company but that the community teams who manage the company’s physical locations won’t be affected.
WeWork plans to focus on the core office-sharing desk business, in an effort to turn around the struggling company, as well as “re-energize employees” and “realign performance incentives.” Specifically, the company plans to turn its focus toward enterprise customers, rather than the small and mid-sized businesses, such as start-ups, that it offered leases to in the past.
The presentation comes after several tumultuous months for WeWork. In September, the company pulled its IPO filing after investors balked at its mounting losses and unusual corporate governance structure. WeWork was poised to run out of cash, but secured an eleventh-hour bailout deal from SoftBank.
Shortly after being installed as WeWork’s new chairman, SoftBank exec Marcelo Claure warned that layoffs would be on the way as the company works to cut costs. In a memo to employees obtained by CNBC, Claure attempted to reassure WeWork staff that employees who are impacted would be treated “with dignity and respect.”
Just over half of WeWork’s Naked Hub locations in China were what the company calls mature, or sites that have been open for more than 24 months, yet China’s occupancy rate was only 76%.