More On: adam neumann
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Tension is running even higher than usual at embattled WeWork this week over a deal that could make disgraced co-founder Adam Neumann hundreds of millions — at the same time the company laid off 250 workers, according to Bloomberg. An April 1 plan calls for SoftBank to buy $3 billion in stock as part of …
Tension is running even higher than usual at embattled WeWork this week over a deal that could make disgraced co-founder Adam Neumann hundreds of millions — at the same time the company laid off 250 workers, according to Bloomberg.
An April 1 plan calls for SoftBank to buy $3 billion in stock as part of a rescue of the startup. Some insiders say the deal will enrich a few investors including Neumann, who could unload nearly $1 billion in stock.
“People are losing their jobs while Adam makes millions,” huffed an insider. “Adam is living high on the hog … I don’t know that he should be bailed out at the expense of everyone else. With all the global economic uncertainty out there, is it really an appropriate time?”
Reports have said employees would get under 10 percent of the proceeds. But others say if SoftBank doesn’t go through with the deal, a group of WeWork’s earliest employees will also lose: The Financial Times reported some staffers paid money out of their own pockets to exercise options in anticipation of the deal. SoftBank reportedly claims preconditions for the deal have not been met, as WeWork’s independent board members want the deal done.
