Co-working giant WeWork is reportedly suffering massive financial losses that are expected to result in the termination of some 4,000 employees over the next few months. Meanwhile, WeWork CEO Adam Neumann is walking away from the company with a cool $1.2 billion in his pocket to add to his personal fortune.
How is this possible, you might be asking yourself? It’s simple. Corporations have no soul, and exist solely to enrich an exclusive few at the expense of many. And in the case of WeWork, there isn’t even a legitimate good or service being offered, but rather a huge Ponzi scheme that appears to have been designed to fail.
After recently being taken over by the Japanese company SoftBank – SoftBank also purchased the failing wireless carrier Sprint several years back – WeWork is implementing some major changes that will see at least one-third of its entire workforce axed, including about 1,000 low-earning maintenance and janitorial staff. But its top dogs, including Neumann, are expected to make off like bandits.
“Yes, there will be lay-offs,” admitted SoftBank executive Marcelo Claure during a recent interview about where WeWork is headed. “I don’t know how many, and yes, we have to right-size the business to achieve positive free cash flow and profitability.”
“But I will promise you that those that leave us will be treated with respect, dignity, and fairness,” he added. “And for those that stay, we will ensure everyone is aligned and shares in future value creation.”
In other words, Claure and SoftBank both think that paying Neumann $1.2 billion for running WeWork into the ground – and this was after Neumann had previously extracted some $700 million from the company for his own personal enrichment – while firing thousands of lower-paid employees represents “respect, dignity, and fairness.”
For more related news about the mass corruption of corporate America, be sure to check out Corruption.news.
As you might expect, many are outraged over Neumann’s payday, including outspoken critic Scott Galloway. He told reporters that “this is a disaster we’ll be teaching for decades in b-school,” emphasizing that while Neumann is being handed a “platinum parachute,” to quote one media source’s words, “thousands of employees are scrambling to clean up the mess, knowing they have a 1 in 2 chance of being fired.”
Many WeWork employees are also upset, and have taken to their company’s internal messaging systems to gripe about this huge injustice. Why should Neumann be allowed to stroll right out with billions of dollars in ill-gotten gains as the employees he was tasked with overseeing face potential termination?
It’s just another day in corporate America, we suppose. This is how things are run in the good ol’ US of A, and it’s how they will continue to be run until the common man finally decides to rise up and defend himself. Until then, money-making scams like WeWork will continue to promise the world and then some, only to deliver absolutely nothing to anyone below the top one percent.
“To his credit, Neumann did build WeWork into a global real estate company fueled by relentless optimism and billions of dollars in investment capital and debt,” explains Zero Hedge about the fiasco.
“In retrospect, however, virtually anyone could have done what Neumann did: after all, he was essentially selling a dollar for less than 50 cents, with the company set to burn through almost as much cash this year as it makes in revenue.”
For more related news about how the house of cards known as the American economy continues to collapse, be sure to check out Collapse.news.
Sources for this article include: