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During the meeting of SoftBank executive Marcelo Claure with WeWork employees, he tried to assure the staff that the things would be soon improved.
Lately, an American real estate company that provides shared workspaces for technology startups WeWork has been experiencing hard times. Because of the crisis, the firm abandoned its IPO plan, forfeited its CEO Adam Neumann, and found itself on the brink of bankruptcy. When WeWork gave up all hopes of survival, a Japanese multinational conglomerate SoftBank stepped in and made an attempt to save the firm with a capital infusion of about $8 billion. As we have reported, Softbank provided the company with a line of credit of about $5 billion in new financing with a fast cash infusion of $1.5 billion which WeWork needs.
Yesterday, SoftBank executive Marcelo Claure, who is currently serving as WeWork’s new CEO, had a meeting with WeWork employees. According to Recode that published a leaked recording of the meeting, Claure tried to assure the staff that the worst was over and the things would be soon improved. Besides, Marcelo Claure revealed the sum invested in WeWork by SoftBank. According to Claure, the Japanese corporation spent $18.5 billion on rescuing WeWork, which surpasses the GDP of Bolivia, his native country.
Marcelo Claure stated:
“We have guaranteed the future of WeWork, but more importantly is we’re putting the future back into our hands. There’s no more days needed to go fundraising. There’s no more days needed to go prove to the investor community that we’re a viable company. The size of the commitment that SoftBank has made to this company in the past and now is $18.5 billion. To put the things in context, that is bigger than the GDP of my country where I came from. That’s a country where there’s 11 million people.”
Further, he admitted that nobody expects it will be easy to overcome this crisis, however, it is possible due to such WeWork’s advantages as ‘an amazing brand’, ‘an amazing set of customers’, its reputation. Claure also pointed out that this crisis is not only a massive challenge but also a massive opportunity.
“What do I want from you? I want a committed workforce. I want people to show up every day at work. All I can ask is to give it all you have. It’s not going to be easy. There’s going to be bumpy roads. We have a lot to recover. We’ve lost some ground. This was a race that we were winning and then suddenly it’s like we’ve lost momentum and it’s hard to regain that momentum”, said he.
Marcelo Claure is an experienced chairman. He was in charge of SoftBank-backed Sprint and has a number of titles within SoftBank itself, including COO of SoftBank Group Corp, CEO of SoftBank Group International and CEO of SoftBank Latin America. He has promised WeWork employees to do his best and help the company, and hopefully, WeWork will be the winner in this difficult situation.