FOX Business & # 39; Charlie Gasparino discusses former WeWork CEO Adam Neumann resigning from his role and what he will personally gain from his departure. the company found itself in the crosshairs of the state of New York.
According to Reuters, New York State Attorney General Letitia James has launched an investigation into the company. "We have received an inquiry from the New York State Attorney's office and are cooperating in this matter," a WeWork spokeswoman said.
While the details of the investigation are not entirely clear, the Softbank-backed company has faced serious concerns over the past few months about maintaining its business model, which relies on a mix of long-term liability and for a while.
It also faced criticism of its governing standards as founder Adam Neumann had 20 times the voting power of ordinary shareholders before he resigned as chief executive officer of the company in September. Neumann, who negotiated a nearly $ 2 billion payout as part of his exit, will remain with the company in an advisory role. , censure mounting led to WeWork's layoff, and ultimately, scrapping its plans to go public. This was followed by a financial rescue package from Softbank that saw the company's valuation fall by nearly $ 40 billion, from $ 47 billion to just $ 8 billion. WeWork, last week, reached out to T-Mobile head John Legere to overhaul the company's leadership sometime in January, but has since declined Legere's offer. According to an email obtained by The Washington Post, WeWork Executive Chairman Marcelo Claure said the disappearances will begin this week and are needed to create a "better, more focused and even more organization-centered customer. "
The New York Times reported that 1
,000 jobs would be removed from payroll as a result of WeWork removing "noncore businesses." Another 1,000 jobs held by the building maintenance employees will be transferred to an outside contractor.
CLICK HERE TO READ HERE ON FOX BUSINESS