Wework set to call in T-Mobile US boss
The We Company is reported by the Wall Street Journal to be in talks with John Leger, Chief Executive of mobile operator T-Mobile US, about taking on the lead at the troubled office-sharing business Wework’s owner.
We Company has been rocked since the September departure of Adam Neumann, its co-founder, amidst a storm of criticism over how he ran the business. The valuation of the business had dropped from US$47bn (£37bn) to $7.8bn (£6.1bn).
We Company was saved from collapse by Japanese technology group SoftBank, a move that has led to a review of its expansion plans in London, where it is the largest private office tenant, accounting for 7% of leasing activity this year. WeWork is also reported to be giving up space at several of its sites in crisis-ridden Hong Kong. Vacancy levels up China are also cause for concern for the business model, with the Financial Times reporting last month that the country is one of the firm’s worst performing markets.
In Shanghai, nearly 35.7% of the company’s desks were vacant last month, compared with 65% in Shenzhen and 78.5% in Xi’an.
Legere’s leadership of T-Mobile US has seen the company take millions of customers from its rivals and its market value triple since the start of 2015.