Sections

ideals
Business Essentials for Professionals



The We Company To Be Known Again As Wework As It Focuses On Its Core Office-Sharing Business


10/16/2020


The We Company To Be Known Again As Wework As It Focuses On Its Core Office-Sharing Business
The "we" moniker of the parent of money-losing shared office provider WeWorkthe We Company, will be dropped by it and it would be known by its former better-known name, said a report citing an internal memo. Last year, WeWork was forced to cancel its plans for a stock market listing following severe criticism over its business model and erratic management.
 
Last year, the management of the company was effectively taken over by its majority owner SoftBank Group Corp. According to analysts, this change and restoration of WeWork as the official name is a significant and symbolic measure by the new management in the face of the company deciding to focus on the core business of the company – office sharing.
 
WeWork's co-founder, Adam Neumann had introduced the "we" brand in the company in January 2019 and that move was aimed at expanding the core shared office space business of the company into the lifestyle segment.
 
It was later received that the new brand name was trademarked by Neumann and had been given a $5.9 million payment from WeWork for its use for which the co-founder was severely criticised.
 
Neumann was then replaced as the chief executive of the company and then was forced to step off the WeWork board last year following the abandoning of the plans of the company to go public. He later also pledged to return the money 
 
This latest move is another measure being taken by the new management to return the company to WeWork's office-sharing roots, said Sandeep Mathrani, the new CEO, in the memo announcing the name change.
 
"We want to be strategic. We want to be innovative. We want to be impactful. We want to be WeWork," Mathrani wrote. "We are officially restoring our company name from The We Company to WeWork," the memo said, claimed reports.
 
It will become profitable by the end of 2021, WeWork has said despite its business being battered severely by the novel coronavirus pandemic just like many other businesses.
 
Companies that are reducing their real estate footprint because of the pandemic will hopefully be beneficial to the company, WeWork hopes, while companies around the world look to use employees working from home and make greater use of flexible workspace which can be provided by WeWork because of its worldwide footprint.
 
In an effort to steer the company to profitability, new management has been hired and employee numbers have been reduced by Mathrani since Neumann's exit for the company.
 
In the second quarter, it had cut down on its cash burn rate to $482 million, which was almost half of what it had burned through compared to the end of 2019, WeWork said in August. A new financing commitment worth a total of $1,1 billion had also been given to it by SoftBank, the company also said.
 
(Source:wwww.moneycontrol.com)