WeWork will 'transform' SoftBank headquarters, Claure says

[NEW YORK] WeWork will revamp SoftBank Group Corp's headquarters in Tokyo and potentially undertake similar projects at the Japanese conglomerate's properties around the world, according to newly appointed Executive Chairman Marcelo Claure.

In a memo to employees Wednesday, Mr Claure said he knew "firsthand the power of the WeWork brand and the quality of our product" because the troubled office-sharing company had "reimagined" the headquarters of Sprint Corp, where the SoftBank executive also serves as chairman.

"Now WeWork will be doing the same at our headquarters at SoftBank in Tokyo," Mr Claure said in the memo, which was obtained by Bloomberg. "Furthermore, I am committed to do the same across all SoftBank properties around the world, including some of our leading portfolio companies."

SoftBank, already WeWork's largest shareholder, now controls 80 per cent of the struggling startup after a US$9.5 billion bailout that was announced late Tuesday. WeWork, reeling since it scrapped an initial public offering last month, was set to run out of cash as early as next month.

In the memo, Mr Claure thanked the company's staff for "staying strong throughout the crisis" and acknowledged that WeWork will lay off employees, confirming earlier reports by Bloomberg News.

Mr Claure argued that WeWork has "all the necessary ingredients to make this one of the most amazing comeback stories ever, and prove our detractors wrong."

"We have a lot of work ahead of us," Mr Claure said. "The work won't be easy. The path won't always be smooth. But we will prevail. No excuses."

BLOOMBERG