WeWork on Friday announced 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.
In a nearly 50-page presentation, WeWork said it plans to divest several related ventures, including Conductor, The Wing, Managed by Q, Meetup, Space IQ, Teem and Wave Garden. The company expects job cuts to occur across its ventures, G&A and growth-related functions, but said the community teams, which oversee WeWork’s physical locations, will not be impacted as a result of the move.
WeWork plans to focus on the core office-sharing desk business, in an effort to turn around the struggling office-sharing business, 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.
In an apparent nod to former CEO Adam Neumann, WeWork stated that the company would be led by “proven executives in membership-focused, subscription-based businesses” moving forward, instead of being primarily “founder-led.” Co-CEOs Sebastian Gunningham and Artie Minson replaced Neumann in September following his departure.
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