WeWork has only enough cash to last to maybe next spring as it is losing millions of dollars a day, Bloomberg News reported. It is confronting the grim situation of being shut out of the public stock and bond markets to raise new money. This situation for the office-sharing company comes days after a corporate upheaval that saw Adam Neumann, who founded the company nine years ago with a promise to change the world, was ousted as CEO. WeWork’s initial public offering, intended to raise urgently needed financing, was called off, until at least next year. And that, in turn, unraveled a $6 billion financing package. So now the two new co-CEOs named to replace Neumann — Sebastian Gunningham and Artie Minson — need to quickly figure out a way forward for a company that was once one of the world’s most valuable startups but has never made a penny in profit. That likely means seeking substantial new bank loans and private investments. It also may mean shedding thousands of jobs and tossing out Neumann’s grow-at-all-costs ambitions.
