California – WeWork is one of the most flashy startups. Engaged in office sharing services, WeWork is fully supported by telecommunications giant from Japan, Softbank. Unfortunately lately, this startup has fallen.
At the peak time, the valuation of WeWork was valued at USD 47 billion or around Rp 667 trillion. One of the founders who also served as CEO, Adam Neumann, was wealthy with assets in the range of USD 3 billion.
WeWork designs offices both physical and virtual for entrepreneurs and companies. They have 5,000 employees spread across 32 countries.
It’s a shame that over time, many of WeWork’s business practices have been questioned. In 2018, it is known they suffered massive losses of up to USD 2 billion.
Ahead of an IPO plan or selling shares to the public, WeWork also released a surprising financial document. They apparently still lost USD 900 million in the first half of 2019 and had a rental obligation of USD 47 billion.
WeWork’s revenue is doubling per year. But no matter how big the revenue growth is, spending is much higher. As a result, Neumann was forced to resign from his position and the IPO plan was canceled.