NEW YORK (Reuters) – The New York State Attorney General (NYAG) is investigating WeWork, according to two people familiar with the matter, adding to a mounting series of problems that have occurred in the workspace is a provider of a Wall Street darling to pariah in a matter of weeks.
FILE PHOTO: WeWork’s logo is displayed outside of a co-working space in New York City, New York, New York, USA on January 8, 2019. REUTERS/Brendan McDermid/File Photo
The company, which is expected to lay off thousands of workers at the beginning of the week, as it faces ballooning losses, confirming on Monday that he had been contacted by the office of the NYAG, Letitia James.
“We have received a request from the office of the New York state Attorney General, and to co-operate in the matter,” he said in a WeWork spokesperson when contacted by Reuters.
A spokesman said that the NYAG declined to comment.
Among the issues that the NYAG is investigating whether WeWork, the company’s founder and former chief executive, Adam Neuman, indulged in self-dealing to enrich themselves.
Neumann bought the properties, which he then leased out to WeWork, which I borrowed against their own best interests in the company, and there are plans to charge WeWork for almost $6 million of which is for the use of the trademark on the word “We” when the company re-branded itself as The Company.
The company has shelved its plans for an initial public offering on Sept. 30 days after the investors grew wary of its losses, the business model and the corporate governance committee.
Neumann had resigned as CEO last week. He also agreed to the return of the cash flows from the use of “We”.
A spokesperson for the police of the Construction, refused to comment.
WeWork has agreed to rescue its second-largest shareholder, a Japanese technology investment company SoftBank Group Corp. over the last month as it faced a cash crisis. SoftBank agreed to inject $6.5 billion into debt and equity at WeWork, and for the funding of a $3 billion acquisition of the existing shareholders, including over $1 billion for a range of the Stand’s stock.
WeWork is now faced with a major re-structuring. Job losses will be announced later in the week, in areas that do not have support for WeWork’s core business goals and objectives, and said The us Firm was recently appointed as the Executive Chairman, Marcelo Claure, in an email to staff that was reviewed by Reuters.
The New York Times reported on Sunday that the WeWork preparing to cut 4,000 jobs. The company had 12,500 employees at 30 June, and there are others who work for the affiliates.
The following steps have to be of the form of the company in the future, it will be announced at a company meeting on Friday, Claure said in an e-mail.
He told WeWork needs to be a more efficient and more customer-focused organisation, to grow it.” We’re going to have to try to eliminate and scale back certain functions and responsibilities”, said Claure, who is also an executive at SoftBank.
To An Oct. 11 is presented to the holders of the bonds specified in administrative jobs would be cut, along with jobs at WeWork ‘ s venture-capital arm, in the so-called growth-associated functions, in a possible reference to the design and construction of the units.
This is not the first time, WeWork, is under investigation by the NYAG. The company has rolled out policies on their own employees to sign non-agreements it has reached a settlement with the state attorney general last year.
Bloomberg News reported on Friday that WeWork is facing scrutiny from the U.s. Securities and Exchange Commission over whether it breached financial regulations when they tried to replace her with a public listing. WeWork declined to comment on the report.
WeWork’s 2025 bond has weakened sharply over the past few weeks, getting 16.057 per cent on Monday, according to data from MarketAxess.
Reporting by Greg Roumeliotis, Joshua Franklin, and Koh Gui Qing; With Reporting by Herb Lash and Megan Davies; Editing by Martin Howell