WeWork staff, facing layoffs, express outrage at founder Adam Neumann’s $1.2-billion payout

WeWork will narrowly avoid financial ruin and in the process, reward its former leader, Adam Neumann, with as much as US$1.2 billion. The reaction from his ex-colleagues, who are still facing the prospect of mass job cuts and a corporate crisis: “You’ve got to be kidding me.”

WeWork’s board agreed Tuesday to take a bailout from SoftBank Group Corp., which will secure an 80 per cent stake. The Japanese conglomerate will provide US$6.5 billion to the business as it’s on the verge of running out of money. SoftBank will also buy as much as US$3 billion in stock from shareholders at the lowest price since 2015.

In a statement announcing the deal, SoftBank founder Masayoshi Son said he’s “committed” to WeWork and its employees. WeWork’s co-chief executive officers, Artie Minson and Sebastian Gunningham, said the agreement with SoftBank will enable growth for the company and financial opportunities for employees and other shareholders.

In recent weeks, an executive exodus and cost-saving measures had already dampened morale. Especially in satellite offices, many workers had stopped coming into work. News of Neumann’s “platinum parachute,” as one former employee described it, made things a lot worse this week.

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