WeWork on Wednesday announced that it has sold of its business management software company Teem, as it continues to offload more non-core ventures. Along with it, the company has also sold off its minority stake in co-working start-up The Wing, designed for women, to a set of new investors.
Teem will now be owned by digital workplace solutions provider iOFFICE. WeWork has been struggling a lot following its disastrous IPO, which was called off last year. Needless to say, the decision is in a bid to restructure the company and cut costs for the future.
WeWork tries to bounce back
WeWork's co-chief executive officer, Artie Minson, on Wednesday said in a press release that the sale is part of the company's plan to restructure itself and focus more on its core business area. WeWork's was launched as a shared workplace operator but the company in recent times has deviated to a number of other businesses.
WeWork had acquired Teem in September 2018 and the sale comes within less than two years. The financial terms of the sale were, however, not disclosed. The company also said that it plans to sell off more of its non-core businesses like Meetup and Managed by Q in the near term.
WeWork has been aggressively trying to cut down costs. The shared workspace operator said that it has already closed down its co-working start-up Spacious and also plans to do the same with WeGrow, its private school in Manhattan, by the end of this year.
All's not well at WeWork
WeWork has been ailing for quite some time now following its disastrous IPO last year. The company now plans to bring back its focus on its core business area, which has seen it aggressively selling its other non-core ventures over the past few months.
The company in November said that it has drawn a "90-day game plan" and will sell off all its non-core ventures and try to bounce back. The company has also been on a firing spree. In November, the company started the layoff procedure of 2,400 employees globally.
In October, SoftBank Group, the largest investor in WeWork, said that it would buy 80% of WeWork for a $9.5 billion bailout package to help the company get back on its feet. At one time in 2019 the company was valued at $47 billion which plunged to less than $8 billion in just a few months.
WeWork deviated from its core business and branched into gyms, co-living buildings and even school in recent times. This compelled the company to hire more workers thus ballooning its operating costs. However, despite the aggressive sales, it still looks like quite a long road for WeWork to bounce back.