The efforts made by WeWork to cut down the budget by dismissing the company’s CEO and also the delay in the IPO (Initial Public Offering) seem to be impacting its subsidiaries as well. WeWork acquired Meetup in the year 2017 for about $200 million as the report suggests which has now made an announcement for a round of layoffs, according to the information gathered from people familiar with the matter.
According to the information mustered up, the company that aims at helping out people foster some connections in-person by smoothing the progress of various events across the world has laid off about 25-per cent of its employees. And most of them belonged to the department of engineering.
The top priority for Meetup is to build the best possible product, which would serve our community of people consisting of more 44 million active participants from across the globe, said the representative of the company. He added to his statement that the company made some arrangements and organized while considering the goal that includes the restructuring of some of the departments of Meetup.
Further, the news follows suggesting the documented attempts made by WeWork for restructuring in order to compensate for the high loss in their business. In the previous month, SoftBank facilitated the over-valued trade with a loan of $5 billion, which served the purpose of a lifeline along with $1.5 billion in the form of equity funding and $3 billion offer for a tender, according to the information gathered up from some of the renowned sources.
All the loans, equity funding, and tender provided by SoftBank helped save the company from going bankrupt. In addition to this help, WeWork has received enormous investments from the telecom giant from Japan that owns about 80-per cent share of WeWork now. The mountain of cash by SoftBank had valued WeWork at an astounding offer of $47 billion. However, the latest investment package dropped down to $8 billion only.
According to the latest reports the former Chief Operating Officer and Vice Chairman Artie Minson and Sebastian Gunningham, respectively, are serving as the co-Chief Executive Officers, who seemed to be very focussed on the new strategies that involve the cutting down of the budget. Various reports have suggested that the business is weighing the sales of its subsidiaries as well which include Meetup, which is managed by Q and Conductor.