WeWork Pulls Back On Overzealous Profit Forecasts For 2016

Adam Neumann, WeWork
Former Wework Ceo Adam Neumann

Co-working pioneer WeWork has cut profit forecasts for 2016, pulling back from the somewhat overzealous expectations it set before the year began.

Among the most valuable private companies backed by venture capital, WeWork has raised more than $1.4B to get the company off the ground, opening offices in 23 cities in seven countries, and was valued at $16B by investors in March after securing $400M in financing.

But despite its rapid growth, the startup has been making job cuts and slowing its expansion plans. The company recently hacked its 2016 profit forecasts by 78%, Bloomberg reports, in addition to cutting revenue forecasts by 14% and reporting an expected 63% in negative cash flow.

With delayed building openings and higher-than-expected construction costs, CEO Adam Neumann (pictured) said the company had to get its finances in order. He implored employees to reverse their "spending culture," telling them that little things like turning off lights at 2am could help the company reach its fullest financial potential.

Still, Adam emailed Bloomberg last week stating that the “business is performing incredibly well and is stronger than ever.” [Bloomberg]

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