We Company, parent of money-losing shared office supplier WeWork, which last year yanked intends to go public following harsh criticism within its business model and erratic direction, is falling the “we” moniker to revert to its better-known name, according to an internal memo seen by journalists.
Restoration of WeWork since the official title is the most emblematic attempt to date by handling installed last year by majority owner SoftBank Group to focus on its core office-sharing business.
The “we” brand was released in January 2019 from WeWork’s co-founder, Adam Neumann, with the intent of broadening the shared office space company into a lifestyle company.
Neumann was widely criticized when the company disclosed he’d chased the brand and received a $5.9 million payment from WeWork because of its usage.
Neumann, who had been replaced as chief executive and stepped off the WeWork board last year after the company abandoned plans to go public, afterwards said he’d return the money.
Sandeep Mathrani, the new Chief Executive Officer, stated in the memo announcing the name change the move is just another step in returning the business to WeWork’s office-sharing roots.
We want to be WeWork, the CEO wrote.
“We are officially restoring our company name from The We Company to WeWork,” the memo stated.
WeWork, which has been slammed by the coronavirus-induced recession combined with many different companies, has stated it will become profitable by the end of 2021.
The business hopes to gain from corporations that are reducing their property footprint due to the pandemic and also have looked to working from home and increased use of flexible workspace, which WeWork can supply with its worldwide footprint.
Since Neumann’s exit Mathrani has hired new management and cut headcount in a bid to steer the organization to profitability.
WeWork in August said it’d cut its cash burn to $482 million in the next quarter, or nearly in half from the end of 2019. The company also said it had obtained a $1.1 billion commitment in new funding from SoftBank.
WeWork withdrew its public offering in September 2019 that seemed to value the company at $47 billion and make it among the year’s latest IPOs.
WeWork soon entered a tailspin because its valuation dropped to less than $8 billion. Following a control shake-up it stays enmeshed in suits over a 3 billion tender offer to existing shareholders.
The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Herbert Lash in New York. Additional reporting by Joshua Franklin in New York. Editing by Matthew Lewis.
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