SoftBank CEO Masayoshi Son told WeWork executives he wants the company to turn a profit by 2021
- In a meeting with WeWork executives, last Thursday, SoftBank's Masayoshi Son said that he wants the company to become profitable by 2021, according to Fast Company.
- Son reportedly told the executives to find new ways to monetize the hundreds of coworking spaces currently owned by WeWork.
- WeWork's private valuation has plummeted more than 80% since its failed IPO, creating pressure on the company to cut costs and identify a more sustainable business model.
- The New York Times reported that the company may lay off more than 4,000 employees as part of its restructuring.
SoftBank CEO Masayoshi Son told a group of WeWork executives in a meeting on Thursday that he wants the company to become profitable by 2021, according to a report from Fast Company's Katrina Brooker.
Son reportedly said he wants WeWork to better monetize the real estate it already owns by offering new products and services, as the company attempts to identify a sustainable business model following its catastrophic attempt at going public.SoftBank, WeWork's largest investor, recently agreed to rescue the company through a combination of new financing, stock buybacks, and additional investment. As SoftBank tries to turn WeWork into a profitable company, it has begun exploring new ways to monetize existing office spaces as well as launching a broad cost-cutting effort.
Marcelo Claure, the SoftBank-appointed Chairman of WeWork, told WeWork employees on Monday to expect layoffs this week, according to an internal memo obtained by Business Insider. The New York Times reported on Sunday that the job cuts cold affect more than 4,000 employees.
The increased pressure comes as SoftBank cut its valuation of WeWork by 83% and posted an $8.8 billion investment loss last quarter for its Vision Fund I.
Representatives from WeWork and SoftBank did not immediately respond to a request for comment.