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WeWork to divest all non-core businesses

FILE PHOTO: A WeWork logo is seen at a WeWork office in San Francisco, California, U.S. September 30, 2019. REUTERS/Kate Munsch(Reuters) – The We Company, owner of office-space sharing company WeWork, disclosed on Friday it will divest all non-core businesses and reduce headcount across its ventures as part of a 90-day plan. In an investor presentation dated Oct. 11, but made public on Friday, the company said the non-core businesses being divested include Meetup, The Wing, and Space IQ. (we.co/2Ntb9cw) The company which said it had reached 580,000 memberships as of third quarter, excluding India, expects the job cuts to occur across its ventures, general & administrative, and growth-related functions. WeWork in September withdrew its initial public offering after the SoftBank-backed startup ousted founder Adam Neumann as its chief executive officer. The company had failed to excite investors who raised concerns about its burgeoning losses and a business model that involves taking long-term leases and renting out spaces for a short term. The company said on Friday it would have “proven executives” in its membership-focused, subscription-based businesses. WeWork will now focus on its enterprise customers, instead of small and mid-sized businesses which include start-ups. Reporting by Manojna Maddipatla in Bengaluru; Editing by Shailesh KuberOur Standards:The Thomson Reuters Trust Principles.

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