We Co., the parent company of WeWork, has reportedly been burning cash a bit too rapidly.
As of June 30th, the New York-based company reportedly had about $2.5 billion in cash, but was also reportedly spending about $700 million per quarter, and would reportedly run out of money at that rate sometime after the first quarter of 2020, The Wall Street Journal reports. Chris Lane, an analyst at Sanford C. Bernstein & Co., projected that, if We keeps growing, it go through about $10 billion in cash between 2019 and 2022.
That's probably part of the reason why the company's new co-CEOs, Sebastian Gunningham and Artie Minson are reportedly planning on cutting thousands of jobs, putting extraneous businesses up for sale, and getting rid of some unnecessary perks like the private Jet purchased by recently ousted CEO Adam Neumann.
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All in all, it's a tumultuous time for We, whose leaders used to stress that the company had plenty of cash on hand and would therefore be immune to the consequences of big spending. Read more at The Wall Street Journal.
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