WeWork's shares were sliding deeper into trouble as the office-sharing company is hounded with a new series of negative headlines over the last weeks - from a regulatory probe into its botched initial public bid to a third-quarter loss of $1.25 billion.
According to the bond-price reporting system Trace, the company's $669 million bills due in 2025 fell about 3 cents on the dollar to about 71 cents on Monday, lifting its debt yield to more than 15 percent.
The firm said it will continue undertaking a major corporate restructuring in the coming days as it tries to rebound from a recent failed initial public bid and saw it is stock fall from $47 billion to around $8 billion. Previously, people familiar with the matter told Bloomberg that about 2,000 of the job cuts have been completed.
WeWork had a tough couple of days. Last week, the company told bondholders that its net loss in the third quarter more than tripled as it planned for the IPO that it would eventually give up.
The U.S. Securities and Exchange Commission is also conducting an investigation on the operations of WeWork and its reporting to shareholders in a number of news articles that detail potential internal conflicts of interest and the successful fund-raising of the firm, Bloomberg News reported last week as well.
Amid rumors that John Legere, T-Mobile chief executive, was in talks running the organization, a person familiar with the matter said it was not accurate. In September, WeWork fired the former top boss, Adam Neumann.
Over the past few weeks, the employment reductions have taken place at WeWork as the organization tries to strengthen its financial vessel. According to the New York Times, the biggest chunk of reductions could be delivered this week.
According to sources, the social workplace firm could terminate at least 4,000 workers as early as Tuesday after heavy losses took the company to the bankruptcy edge.
According to the Times, the organization will slash 2,000 from a core business workforce of 2,500 and about 1,000 from non-core companies as they are being sold or shut down.
Building maintenance staff could be transferred to an outside company for a cost of another 1,000. There could be more in all a quarter of the company's 12,500 employees, but sources disclosed the Times.
In late September, WeWork shelved proposals for the initial public offering after shareholders were encumbered by losses from the company and had concerns about its corporate governance.
