WeWork is cutting its revenue forecasts by 14% and telling employees to change how they’re spending money, according to a report from Bloomberg’s Ellen Huet who viewed the internal documents.
The company cut its EBITDA profit forecasts in April by 78%, according to Bloomberg. It also lowered its revenue estimate by 14% and its negative cash flow surged by 63%.
At company all-hands meetings, WeWork CEO Adam Neumann told its staff to cuts its costs, while citing other startups that had gone out of business for frivolous spending.
In June, the company said it planned to cut 7% of its staff after placing a pause on hiring. However, its spokesperson insisted at the time that it was still on track to hire hundreds of employees by the end of the year.
This story is developing…