About a month ago, WeWork announced it would cut back about 7% of its workforce, claiming however that funds were not a motivator behind the decision. Recent leaked documents to Bloomberg prove the company is making cuts on its staff, its spendings, and its projections.
According to the leaked documents and videos, WeWork’s forecast for the year isn’t as bright as it was only a few months ago. Their internal financial review for the month of April showed that they slashed their 2016 profit forecast by 78%, their revenue estimate by 14%, and reported a 63% surge in negative cash flow.
Bloomberg cites that “the lower revenue projection was due to building openings that were delayed, some by more than six months.” And added that the review also showed “higher spending on construction and lower-than-expected remodeling subsidies from landlords, particularly outside the U.S.”