The decision to terminate all new leases comes as WeWork`s parent company – we Company – plans to lay off thousands of its more than 12,000 employees in the coming weeks. “WeWork continues to sign new leases with our leasing partners,” Barron said Friday. “We expect entry into new leases to slow in the coming quarters as we grow more strategically and focus on accelerating our path to profitability.” The decision to suspend new leases comes as We Company plans to lay off thousands of its more than 12,000 employees, some with close ties to co-founder and former CEO Adam Neumann. WeWork insists that it report on the termination of the new leases. WeWork is ending all new leases with landowners as the company – which bleeds money – is trying to quickly rein in costs, according to those briefed on the deal. The Financial Times reported Thursday that the company, officially known as We Company, had stopped signing new leases to control costs. (Reuters) – WeWork is ending all new leases with homeowners as the U.S. office-sharing startup seeks to cut costs, the Financial Times reported on Thursday, citing informed individuals. Space as a service agreement, or co-working agreement, are licenses, which are separate and distinct from leases.
The co-working agreement offers the licensee greater flexibility and, legally, they are more like members of a gym or club. However, flexibility and maintaining control may have the unintended consequence that licensees have increased their responsibility to their customers. WeWork, New York`s largest tenant and one of London`s largest, has reportedly stopped all new leases with property owners. However, the fate of the company`s IPO remains uncertain. The co-CEOs have made the decision to sell three of the acquisitions made under Neumann – Conductor, Managed by Q and Meetup – for which they have already received provisional expressions of interest in recent days, said two people who were informed of the case. Under Neumann`s leadership, We Company is preparing for an IPO, but has postponed Float`s plans due to corporate governance and corporate valuation issues. We Company (PRIVATE-NA:WE), the parent company of office-sharing company WeWork, simply cannot take a break after a series of setbacks. Former employees said the cost cuts indicated that Minson and Gunningham were sending a signal to Wall Street to take seriously the change in a culture known for its excesses.