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WeWork, it seems, is in a bit of a Catch-22.
With money running short after a failed initial public offering, WeWork has been planning on laying off thousands of employees. There's only one problem: It's so short on cash that it doesn't have enough money to pay severance to affected workers, according to The Wall Street Journal's Liz Hoffman and Maureen Farrell.
So, WeWork, which is believed to be in danger of running out of cash within a month without new financing, has postponed the layoffs, The Journal reported Monday.
A WeWork representative did not respond to an email seeking comment.
The delay could be temporary. WeWork's board is expected to meet Tuesday to consider new funding offers from SoftBank and JPMorgan. Both deals would involve propping up the struggling company with billions of new dollars in additional cash.
www.insider.com
With money running short after a failed initial public offering, WeWork has been planning on laying off thousands of employees. There's only one problem: It's so short on cash that it doesn't have enough money to pay severance to affected workers, according to The Wall Street Journal's Liz Hoffman and Maureen Farrell.
So, WeWork, which is believed to be in danger of running out of cash within a month without new financing, has postponed the layoffs, The Journal reported Monday.
A WeWork representative did not respond to an email seeking comment.
The delay could be temporary. WeWork's board is expected to meet Tuesday to consider new funding offers from SoftBank and JPMorgan. Both deals would involve propping up the struggling company with billions of new dollars in additional cash.
WeWork has reportedly postponed thousands of layoffs because it's too broke to pay workers severance
WeWork is thought to be in danger of running out of cash within a month if it doesn't get new funding soon. It had planned to cut jobs to save money.
www.insider.com
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