Masayoshi Son’s vision for WeWork has been outlined in a memo sent to staff by SoftBank COO, Marcelo Claure, who has taken over as WeWork chairman. The company needs to “right size” in order to achieve positive free cash flow and profitability, Claure said. Softbank, the firm's biggest outside investor, has agreed to invest billions in the firm after the collapse of WeWork's flotation plans and ouster of co-founder Adam Neumann. In the memo, Claure said that WeWork’s business model is based on three pillars: 1. Reports suggest it could be as high as 4,000, or a third of the workforce. Previously, job cuts had been estimated at around 2,000, although the plans had been postponed due to lack of cash to pay severance. WeWork has lacked focus on the core business, Claure said, adding that turnaround plans include prioritising the US, Europe and Japan, while pulling back from other regions.
Masayoshi Son’s vision for WeWork has been outlined in a memo sent to staff by SoftBank COO, Marcelo Claure, who has taken over as WeWork chairman. The company needs to “right size” in order to achieve positive free cash flow and profitability, Claure said. In the memo, Claure said that WeWork’s business model is based on three pillars: 1. Reports suggest it could be as high as 4,000, or a third of the workforce. Previously, job cuts had been estimated at around 2,000, although the plans had been postponed due to lack of cash to pay severance. WeWork has lacked focus on the core business, Claure said, adding that turnaround plans include prioritising the US, Europe and Japan, while pulling back from other regions.