WeWorkers Coalition Facing Layoff Say They're Nothing Like Adam Neumann, Seek Dignified, Fair Treatment

A group of WeWork employees facing layoffs in the near future are asking that they not be defined by the machinations of founder Adam Neumann and be treated with “dignity.”

“We don’t want to be defined by the scandals, the corruption, and the greed exhibited by the company’s leadership. We want to leave behind a legacy that represents the true character and intentions of WeWork employees,” said a letter written this week by 150 of the company’s employees who identified themselves as the WeWorkers Coalition.

The letter asks that those being laid off be “provided fair and reasonable separation terms commensurate with their contributions.”

The shared-workspace company experienced explosive growth, outfitting its office space with amenities like free beer and infused water, perks attractive to millenials. It began its slide in September when it first put off an initial public offering and then postponed it again a few weeks later when its valuation plummeted from $47 billion to $8 billion, opting instead for another bailout from major investor SoftBank Group Corp. The IPO now isn’t expected to happen until next year.

WeWork never showed a profit, banking instead on revenue growth, while investors turned their attention to earnings and cash flow. The result is a restructuring plan orchestrated by SoftBank, which has an 80% stake, that will shrink WeWork’s footprint and result in the layoffs of thousands of the company’s 15,000 workers.

SoftBank already has invested 7.5 billion in WeWork and is due to add $1.5 billion more next year. It also has invested $1.6 billion in WeWork’s foreign subsidiaries.

Wall Street also has thrown money at the company but extracted significant fees to protect that investment. JP Morgan led a group of banks that became a major lender in 2015 with a $650 million loan and ponied up $500 million more in 2017. Wells Fargo was going to chip in $100 million, requiring the company to set aside cash as collateral, but an internal committee rejected the loan.

Neumann left the company with a $1.7 billion severance package plus a $185 million consulting fee to be paid over four years despite a series of scandals that tarnished the company’s reputation.

“We are not asking for this level of graft. We are asking to be treated with humanity and dignity so we can continue living life while searching to make a living elsewhere,” the employees said, seeking severance pay, continuation of company-paid health insurance and compensation for lost equity, plus a say in a multitude of issues that still need to be resolved.