Reuters
- WeWork’s bonds due 2025 fell to a new low of 71 cents Monday, Bloomberg reported.
- The same day, WeWork Chairman Marcelo Claure said that layoffs will begin this week. Roughly 4,000 employees could be out of a job.
- In addition, the U.S. Securities and Exchange Commission is reviewing the company for potential violations.
- And, WeWork lost $1.3 billion in the third quarter, more than double its losses in the same quarter in 2018.
- Read more on Business Insider.
WeWork’s bonds have fallen to yet another fresh low as investors grow increasingly worried that the company won’t be able to repay its debt.
The company’s $669 million in notes due in 2025 fell to 71 cents each on Monday, sliding more than three cents to the new low, Bloomberg reported, citing Trace data. The yield on the bonds is now more than 16%.
A string of bad news is eroding investor confidence in the company, already low after a failed initial public offering attempt in September cut WeWork’s valuation to $8 billion from $47 billion.
On Monday, WeWork Chairman Marcelo Claure said that layoffs will begin “in earnest” this week. It’s expected that the company could lay off around 4,000 people, roughly a third of the its total employees.
The announcement from Claure came after reports Friday that the U.S. Securities and Exchange Commission is reviewing whether the company violated any financial rules in the months leading up to its IPO flop. A preliminary inquiry is looking at WeWork’s business and its disclosures to stakeholders, Bloomberg reported.
And Thursday, a company earnings presentation showed that WeWork lost $1.3 billion in the third quarter, versus $500 million in the same quarter a year ago.
