In a repudiation of the excess of its erstwhile CEO Adam Neumann, WeWork announced Friday via an October 11-dated deck that it’s dropping The We Company’s push into activities that went past its “core” co-working business.
The company specifically calls for more focus on its “member experience,” and notes that its leadership model will be lean on “proven executives” to clean up what its previously “founder-led” strategy resulted in.
To understand the new, old WeWork, let’s explore the company’s plans.
WeWork’s plan has four key planks: cutting extraneous operations, layoffs, boosting its real estate footprint, and sorting out its internal and external relationships.
WeWork plans on making cuts across Ventures, G&A, and “growth-related functions,” according to the presentation.
While there have been reports that WeWork is dramatically cutting back on new leases, the firm claims in its new deck that it expects “record high” new “desk openings” in the fourth quarter.
That should help the company keep up its torrid growth; how those openings will impact its cash position and operating burn is not clear.
Given the drubbing (mostly fair) that WeWork endured in recent months, including a pulled IPO and nearly running out of cash, working on fixing relationships is a fine idea.
That’s continued, it seems, with the company claiming run-rate revenue (including India-based top line) of $4.1 billion, up 106 percent year-over-year.
Finally, before a blizzard of slides disclosing the company’s financial model regarding buildings, leases, and maturity-improved metrics, the company showed the following:
All told the deck shows a WeWork that is the most focused, and the most hard-nosed, when it comes to financials that we can recall seeing.