- WeWork Chairman Marcelo Claure presents a five-year strategic plan for the company's board of directors on November 19.
- It will include a new governance model focusing on "accountability and justice"; a new organizational and compensation plan; and financial restructuring that eliminates the need to raise more capital.
- Business Insider obtained a full copy of the note.
- Read full Business Insiders WeWork coverage here.
WeWork board chairman Marcelo Claure presents a five-year strategic plan to the company's board of directors November 1
Claure said the plan would include a new compensation plan, and an economic restructuring that eliminates the need to raise more capital. A WeWork representative declined to comment.
Here is the complete note:
I hope you all had a good week. Before I go into this week's update, I want to share a personal story with you.
I ran the New York City Marathon last Sunday. I'm a big guy, and it may not have been the prettiest sight, but I'm done – and although challenging, it was extremely rewarding. I got to see all five neighborhoods in New York from the ground up and run with people from all over the world. And as I operated, I realized that we serve a group of companies and individuals as diverse as New York itself – from startups in Brooklyn, to businesses in Manhattan, to daily entrepreneurs in Queens. Over 26 miles, I got an incredibly humble sense of the vast scale of humanity we serve every single day.
In moments of rapid change, it is not always easy to pause and give each other credit, but these are actually the times when it is most important to do just that. Our members, in places from New York to Madrid and beyond, are changing the world with their products and services – and they have trusted their team to help them do so. We make your work possible. This month, we already opened more than 30 new locations in cities around the world – Austin, Bengaluru, Berlin, Birmingham, Bogota, Boston, Chicago, Houston, Kobe, Kuala Lumpur, Lima, Los Angeles, Manila, Moscow, New York, Noida, Osaka, Paris, Philadelphia, Perth, Phoenix, Sacramento, San Francisco, São Paulo, Seattle, St. Louis, Tel Aviv, Toronto and Washington DC. They too will soon fill up with companies – start-ups that work with established organizations that depend on us to be a part of their future. You enable their innovations every day, and you should be proud of that.
I would also like to take this moment to emphasize an important aspect of our culture that we should all focus on as we move forward – that is how we will achieve everything we intend to do. We are a culture that believes in making the impossible possible. I want the culture to continue, but always with integrity and respect – respect for the law, our politics and, most importantly, each other.
This conversation is difficult: I have heard complaints about people behaving in a way that does not meet our behavioral expectations. When we hear about a problem, you have my commitment that we will investigate it and act on our findings. For example, we have recently investigated complaints about abuse of vendor selection and management processes. Upon completion of investigations, we terminated the employment of 13 Latin American (Latam) and US, Canada and Israel (USCI) employees. We corrected these errors immediately after hearing the complaint and investigating the incidents.
I want to be clear – WeWork does not tolerate behaviors that do not respect our people, members or business. We encourage you to share any concerns through our help desk. No one will be rewarded for coming in good faith. We know that we can build a strong culture of compliance only if you can raise concerns, as colleagues recently did in Latam and USCI.
We want you to be a part of shaping the culture of the future – a culture that we are proud to be a part of and value integrity and respect at the core.
I know this has been a very difficult time. Dismissals and restructuring are on everyone's mind – and how could they not be? These are the toughest decisions we have to make, but the unfortunate reality is that we must complete layoffs over the next few weeks. Our top priority is to treat those who will ultimately leave us with dignity and respect, including fair severance packages and the continuation of benefits that allow them to move on to the next phase of the journey.
However, I would like to emphasize that business is safe. This week, I sent letters to our best corporate clients, landlords, brokers and community teams, announcing that WeWork's business plan for the next few years is fully funded. Softbank's $ 6.5B in debt and equity brings our total committed capital to $ 18.5B, making this one of the largest investments ever made in a private company in history. We can now turn our attention to what matters most: To serve the members and get this organization back on a path to sustainable growth.
This is a lot of information and we are moving fast. Looking ahead, we are also in the process of finalizing an updated WeWork five-year strategic plan. It will include:
A new operating and management model that emphasizes accountability and fairness to each employee
A new organizational and compensation structure
Financial restructuring that will ensure WeWork has the right cost structure it needs to to grow sustainably, without having to raise more capital
I present this plan to the board of directors of WeWork on Tuesday, November 19th. After that, we plan a meeting throughout the company where I will share the same document with you. This plan will be our North Star for the next five years, and it is important that we feel that it represents who we are as a company and the way we all want to be together.
In the meantime, keep sharing thoughts with me. I have received hundreds of emails and I have read every one of them.
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