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Tech & Science A 300 times return, inside McDonald's CEO change, and what's next for WeWork

17:05  24 november  2019
17:05  24 november  2019 Source:   businessinsider.com.au

WeWork faces U.S. SEC inquiry over possible rule violations: Bloomberg

  WeWork faces U.S. SEC inquiry over possible rule violations: Bloomberg WeWork faces U.S. SEC inquiry over possible rule violations: BloombergThe SEC's inquiry is preliminary and may not lead to any allegations of wrongdoing, Bloomberg reported, adding that it could not determine whether specific WeWork business decisions or transactions prompted the review.

McDonald ' s CEO Steve Easterbrook's termination as CEO earlier this month following a relationship with a female coworker sent shock waves through the What ' s next for WeWork . WeWork this week laid off 2,400 employees, and Meghan Morris got the inside track on the all-staff meeting that followed.

WeWork is revolutionizing the way people and companies work. WeWork is changing the way people and companies work. Spanning one-third of the Fortune 500 to grassroot nonprofits, our members are empowering employees What type of workspace solutions are you most interested in?

Ryan Hudson standing in front of a building: Honey cofounders Ryan Hudson and George Ruan. Honey cofounders Ryan Hudson and George Ruan.

Hello!

While most of Wall Street was focused on deal talks between Charles Schwab and TD Ameritrade this week, another financial services deal caught my eye.

Honey, which makes a browser extension that surfaces coupons while you shop online, sold to PayPal for $US4 billion in cash. As Melia Russell reported, the acquisition gives new meaning to the term "sweet deal."

Honey faced rejection from VCs for two years before raising a seed round of $US1.8 million in 2014 from Mucker Capital, Bam Ventures, Ludlow Ventures, SXE Ventures, and an angel investor.

Richard Jun, a cofounder and managing director of Bam Ventures, told Melia Bam put $US150,000 into Honey's seed round. Its investment is worth 300 times that after the acquisition, which comes out to $US45 million.

SoftBank created its own robot vacuum that uses self-driving car technology and costs $500 a month

  SoftBank created its own robot vacuum that uses self-driving car technology and costs $500 a month A new robot vacuum is on the market for $US499 per month from Japanese tech giant SoftBank, aimed mostly at office spaces. SoftBank is the company that has taken over WeWork, and has also heavily invested in Uber and Slack. The vacuum, called Whiz, uses LIDAR sensors, the same technology used in self-driving cars. Visit Business Insider's homepage for more stories. These days, SoftBank might be best known for its role in the WeWork debacle, taking over the coworking company following a failed IPO and the ousting of its CEO, Adam Neumann. But the Japanese giant has other projects in the works, too.

WeWork is an American commercial real estate company that provides shared workspaces for technology startups and services for other enterprises.

If you're new here, I'm Alexei Oreskovic, Business Insider ' s West Coast bureau chief and global tech editor. This is the weekly newsletter that highlights the best of BI Prime' s tech The book' s teachings on just-in- time inventory and the direct-to-consumer model were sacred tenets of modern business.

The deal is emblematic of an evolution in the payments space, where more companies are looking to move beyond just moving money.

An Andreessen Horowitz general partner told Shannen Balogh for example that Uber and Apple are just the start, and eventually every company will want to be a fintech. Citi Ventures meanwhile is betting on cars that pay their own bills, and its co-head of investing envisions a future where your devices make payments without you.

Inside McDonald's CEO change

McDonald's CEO Steve Easterbrook's termination as CEO earlier this month following a relationship with a female coworker sent shock waves through the massive fast-food chain, according to Kate Taylor.

This week she published three stories on the CEO change focused on the immediate aftermath of Easterbrook's exit, and new CEO Chris Kempczinski's efforts to win over employees and franchisees since. Check them out:

Adam Neumann demoted his chief of staff for being pregnant, according to a new complaint against the ousted CEO and WeWork

  Adam Neumann demoted his chief of staff for being pregnant, according to a new complaint against the ousted CEO and WeWork Adam Neumann's former chief of staff has filed a complaint saying that the ousted CEO, WeWork, and the company's current chief operating officer discriminated against her for being pregnant.Adam Neumann's right-hand woman said in a complaint filed on Thursday that she had to fly in a private plane while the then-WeWork CEO and executives smoked marijuana while she was pregnant.

Millennial daycare provider WeWork says it will lay off about one fifth of its workforce – 2,400 employees – as it tries to get its finances in order. These are incredibly talented professionals and we are grateful for the important roles they have played in building WeWork over the last decade."

WeWork presentation. Business Insider obtained a copy of the new organizational chart, which shows co- CEOs Sebastian Gunningham and Artie Minson at the top, next to Claure. Gunningham continues to focus on strategy, while Minson – formerly the chief financial officer , among other roles – is on finance.

  • The chaotic aftermath of the McDonald's CEO's termination
  • The new McDonald's CEO's quest to win over the massive fast-food giant
  • The 1,000 word memo McDonald's new CEO sent to help calm down employees after his sudden, turbulent takeover

Marcelo Claure wearing a suit and tie: Marcelo Claure. Marcelo Claure.

What's next for WeWork

WeWork this week laid off 2,400 employees, and Meghan Morris got the inside track on the all-staff meeting that followed.

The embattled company's path to profitability will focus on six pillars, chairman Marcelo Claure said at the meeting, while four men were named to executive roles.

Some WeWork employees believe working for the company has hurt their careers, Julie Bort reported. Meanwhile, WeWork's competitors say they're ready to hire hundreds next year as they expand.

In related news:

  • Adam Neumann personally invested tens of millions in startups while he ran WeWork. Troy Wolverton asked founders who took his money to reveal what it was like.
  • Megan Hernbroth reported that Zume, the robotic pizza maker that SoftBank valued at $US1 billion, has lost several top execs and appears to have moved away from robots, even as it seeks new money.

Layoffs

It's not just WeWork that's seen layoffs as we head towards the end of the year.

The world’s cutest homes are beyond beautiful

  The world’s cutest homes are beyond beautiful From a tiny treehouse tucked away in an English woodland, to a 100-year-old cottage in picturesque Alabama, these are the world's cutest homes. Brace yourself, because we guarantee you'll want one for yourself!

Under co-founder and former CEO Adam Neumann' s leadership, WeWork became bloated and dilluted by side businesses, including running a school. As the company announced the cuts, workers were seen outside WeWork ' s main office in New York consoling each other.

Led by an eclectic chief executive by the name of Adam Neumann, WeWork made headlines this week Adam Neumann ( WeWork ) at TechCrunch Disrupt NY 2017. WeWork filed confidentially to go public The company, led by founder and CEO Julie Wainwright, raised $ 300 million in the process.

  • Juul laid off 650 workers after federal investigations rocked the company. Tanya Dua talked to some of those who were affected to find out how it was handled and what they saw leading up to it.
  • Graham Rapier got the inside track on Lyft's deal with Gett, which will see 99 engineers in Belarus move to Lyft and roughly 100 US employees laid off.
  • Lauren Johnson was first to report the closure of storied ad-tech company IgnitionOne, and published the letter it sent to shareholders.
  • Patrick Coffee reported that Spotify laid off about 30 in ad sales after missing internal revenue goals.
  • Dell-owned Pivotal is preparing for as many as 150 layoffs ahead of its $US2.7 billion acquisition by VMware, Rosalie Chan reported. Employees are openly protesting management over it.
  • Jeremy Berke got the internal memo revealing why hot California cannabis startup Canndescent quietly laid off 16 workers just days before closing a big funding round.

What have we missed? Let me know!

-- Matt

An invitation

We're hosting an event focused on smart cities in Washington, DC on Tuesday, December 10. The event will explore the impact of various technologies transforming cities, mobility, digital equity, the evolving regulatory and policy environment - and the investment opportunities these innovations create.

WeWork to lay off 2,400 employees in SoftBank revamp

  WeWork to lay off 2,400 employees in SoftBank revamp WeWork to lay off 2,400 employees in SoftBank revampThe long-anticipated layoffs are the biggest move yet by Japanese technology investment company SoftBank Group Corp, which is providing a $9.5 billion lifeline and will soon own about 80 percent of its shares, to make sure WeWork refocuses on its core business and on trying to make money.

WeWork has made a name for itself— despite losing a lot of money—by giving small businesses This Fifth Avenue Manhattan landmark now houses the new headquarters for WeWork . WeWork has signed on to be the main tenant in a $ 300 million redevelopment co-owned by Boston Properties.

The WeWork problem people aren't talking about that is spreading across the co-working world. Increasingly, WeWork and other co-working spaces are pivoting from targeting the independent worker to luring in corporate accounts, promising an alternative to cubicle-ville by providing flashy amenities.

Speakers include Lindsey Parker, chief technology officer for the City of Washington, DC, and Michael Sherwood, the director for innovation and technology for the City of Las Vegas.

Click here for more information, and to apply to attend!

Finance and Investing

Top finance recruiters say 2020 will be rough, and have advice for job seekers: Go middle market, keep a sense of humour, and delete your Hotmail account

For the dozens of job seekers gathered in the 10th floor of a building near Times Square, a text message from a friend that one panelist read aloud didn't exactly inspire confidence.

Tishman Speyer is opening its own flex offices without go-betweens like WeWork. We got a look at the landlord's new space in New York.

Coworking and flex-office space hit the big time this year, thanks to a mix of hype and front-page controversy.

Tech, Media, Telecoms

Silicon Valley VC firm Greylock is betting big that startup founders are ready to trade garages and basements for swanky offices with its legendary startup incubator

Garages have a special place in Silicon Valley lore.

Meet the 22 power players leading the explosion of the US sports betting space

Gaming, media, and tech companies are vying to corner pieces of the burgeoning sports betting market in the US, 18 months after the Supreme Court lifted a federal ban on sports wagering in the country.

Healthcare, Retail, Transportation

Meet the 34 DC healthcare power players who shape the rules for a $US3.5 trillion industry that touches every American

Meet the top people shaping healthcare politics and policy in Washington.

Mars CEO says the global supply chain is 'broken.' Now, the $US35 billion food industry giant is investing $US1 billion to fix it.

Mars' CEO believes the global supply chain is "broken" - and that it is companies' responsibility to fix it.

Palmerston, U.K.’s top cat diplomat, back at Foreign Office after time off for stress .
The U.K.'s foreign pawlicy boss is back in action. After taking some time away from his “chief mouser” obligations, Palmerston, a black-and-white rescue cat, returned to the U.K. Foreign Office on Monday. In a series of tweets, the Foreign Office announced new “Palmerston Protocols” to make sure the cat was happy and healthy inside the government building. After taking some time away from his “chief mouser” obligations, Palmerston, a black-and-white rescue cat, returned to the U.K. Foreign Office on Monday.

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