WeWork Is Closing Its Manhattan School Amid Cash Crunch
- Company shedding assets as it’s quickly running out of money
- School will operate through the remainder of the academic year
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WeWork informed parents on Friday that it will be closing its elementary school after this academic year to focus on the company’s core office-rental business.
Parent company We Co. is shedding assets and bracing for thousands of job cuts because it’s quickly running out of money. WeWork had been counting on a $6 billion loan, contingent on a successful IPO, to meet its cash needs. But that plan unraveled amid questions about its future profitability. The company’s new co-chief executive officers have been moving to slash costs and spin off businesses in an effort to slow its cash bleed. WeWork is in talks now with lenders about a $5 billion debt package, people familiar with the matter said Friday.