- WeWork has delayed the dismissal of thousands of workers because they do not have enough cash to pay them, the Wall Street Journal reported Monday.
- The company could run out of cash until next month, unless it gets new The question of how the company should handle the severance pay was a hot topic of conversation, and employees are particularly worried about the WeWork they hold -Shares.
- The board of WeWork anticipates a review of funding offers from SoftBank and JPMorgan on Tuesday.
- Read the full coverage of WeWork by Business Insider here.
WeWork is apparently in a difficult phase.
Since the money is scarce after a failed IPO WeWork has planned to lay off thousands of employees. There is only one problem, according to Liz Hoffman and Maureen Farrell of The Wall Street Journal: it's so short of cash that it does not have enough money to pay severance pay to affected workers.
So, WeWork, that's supposed to run out of cash within a month, if there's no new funding agreement has postponed the layoffs, the Journal reported Monday.
A representative from WeWork did not respond to an email requesting a comment. The WeWork board is expected to meet on Tuesday to review new financing offers from SoftBank and JPMorgan. In both cases, the company should receive billions of new dollars in additional cash.
WeWork's new co-CEOs told employees in an email last week that the company plans to lay off workers in the coming weeks.
Read the following: WeWork CEOs report that layoffs in emails are coming in before deciding on a rescue package We're working. Employees have been showering management with lately, focusing in particular on what will happen to their outstanding stakes in the company, a person familiar with the matter told Business Insider. Employees also asked if their severance package would take into account the shares they were entitled to.
Many employees were partially paid in shares. Others received WeWork shares when the company acquired their startups. In many cases, the shares received had a much higher value than today.
In a January round of financing, SoftBank rated WeWork at $ 47 billion. The rescue measures proposed by him and JPMorgan would bring the value of the company to a maximum of 8 billion US dollars.
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