We’re still picking through the wreckage left behind from WeWork’s IPO debacle here at Business Insider.
First off, Julie Bort and Meghan Morris talked to 20 current and former WeWork employees, executives, and business partners, and unveiled fresh details on life at the company under former CEO Adam Neumann. They reported on an atmosphere in which boundaries between work and play did not exist. You can read their story here:
Sex, tequila, and a tiger: Employees inside Adam Neumann’s WeWork talk about the nonstop party to attain a $100 billion dream and the messy reality that tanked it
(If you’re interested in how Meghan and Julie went about reporting this story, you can read this Q&A with Meghan.)
WeWork’s methods in delivering outsized growth under Neumann are now facing fresh scrutiny. Troy Wolverton, Meghan, and Alex Nicoll reported that in some cases, WeWork offered deep discounts to convince existing customers to move in to its new locations as it went on a growth binge:
WeWork opened 400 locations in 3 years. In some cases, it used deep discounts to convince existing customers to relocate to help fill them.
Following the excesses of the Neumann era, WeWork’s two new co-CEOs, Artie Minson and Sebastian Gunningham, are trying to clamp down on costs. Meghan teamed up with Becky Peterson to report that WeWork’s planning on shedding up to a quarter of its staff:
WeWork is planning to lay off thousands — up to 25% of its employees — as its new CEOs focus on the core business
Meanwhile, there’s a broader question of whether WeWork’s failed IPO somehow marks the top. Venture capitalists like Bill Gurley and Fred Wilson have weighed in from Silicon Valley. As Marley Jay reports, the view from Wall Street is less favorable:
Morgan Stanley says WeWork’s failed IPO marks the end of an era for unprofitable unicorns — and explains why it leaves the market’s tech kingpins vulnerable
And then there’s the question of what’s next for Neumann himself. Dakin Campbell reported Friday that Neumann is in talks with banks about getting new terms on a credit line:
Wall Street gave Adam Neumann up to $500 million he was going to pay back after WeWork’s IPO. Now that the offering is pulled, banks are scrambling to hammer out a solution.
What have we missed? Let me know.
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Source:: Business Insider