Read the email from WeWork's new chairman where he confirms layoffs and says: 'What we are lacking is focus' and 'accountability'
- A day after WeWork announced it had accepted a bailout package from SoftBank, the coworking company's new chairman addressed the troops.
- In a leaked email seen by Business Insider, the new chairman, SoftBank COO Marcelo Claure, tried to simultaneously pep-talk the troops while confirming layoffs were coming.
- Claure did not acknowledge the $1.7 billion golden parachute offered to ousted CEO Adam Neumann but he did indicate that previous management was lacking both focus and "accountability."
- Business Insider is sharing the full email. For more WeWork stories, click here.
On Tuesday evening, WeWork reached a deal with its top investor SoftBank to prevent the coworking company from running out of cash and possible bankruptcy.
As part of the deal, Marcelo Claure, SoftBank's chief operating officer, will take WeWork cofounder Adam Neumann's position as chairman, and the board will add more members. SoftBank will also reportedly provide Neumann with almost $1.7 billion and he will become a non-voting member of the board.
Business Insider obtained a copy of the email Claure sent Wednesday morning to WeWork employees ahead of an all-hands meeting.
The message thanked employees for hanging with the company during its downward spiral and painted a rosy picture of WeWork's future.
But it also confirmed for a third time that WeWork's employees can expect layoffs and again, for a third time, it offered them no details as to who or how many or when this would commence.
"Yes, there will be layoffs - I don't know how many - and yes, we have to right-size the business to achieve positive free cash flow and profitability," the email said. "But I will promise you that those that leave us will be treated with respect, dignity and fairness."
Read: WeWork CEOs tell staff layoffs are coming in leaked email ahead of decision on rescue package
He also seemed to hint that employees could still expect to get stock in some form: "And for those that stay, we will ensure everyone is aligned and shares in future value creation."
He did not discuss the exodus of leadership or the golden parachute SoftBank issued to Neumann, a circumstance that has infuriated many employees who blame the executive for WeWork's implosion, they told Business Insider.
But he did acknowledge the company has work to do, writing, "To be candid, what we are lacking is focus on our core business: WeWork, along with accountability, and seamless execution."
Here's the full email: