prepares to slash thousands of jobs copy while wework prepares to slash thousands ofjobs copy wework is the biggest commercial landlord here in new york and london, but while the company took on more and more properties are burnt through cash and now softbank is going to have to find a way of dealing with $10 billion worth of leases. and noisy, often crowded co— working space isn't for everyone. form wework customer gene runs a copywriting business. there are pros and cons, ultimately i do think we prefer our owi'i ultimately i do think we prefer our own space because ultimately i do think we prefer our owi'i space because we are ultimately i do think we prefer our own space because we are here to work and not to socialise necessarily. softbank shareholders will be hoping the fiasco at wework isa will be hoping the fiasco at wework is a one off in the company's sprawling investment portfolio. now let's brief you on some other business stories. a boeing whistleblower is claiming that the company's 787 dreamliner could be left without life—saving oxygen if the cabin were to suffer

wework presented a solution. the first building in downtown manhattan is where wework had its first co-working spot and 2011there from 2010 to doubled in size. from then on the growth was exponential. >> the original investors were people involved in commercial real estate. they got early investment from benchmark. eventually it kept growing and taking on new leases and started to grow the business starting in new york city. and theess grew quickly company quadrupled its valuation to $10 billion. 23,000 customers paying membership in 32 locations renting desks for as little as $45 a month. let's nots idea was be a commercial office leasing company, let us accelerate the new world of how people work, and make it better. being surrounded by like-minded individuals, being a part of something bigger ton yourself inspires people work harder, spend more time at work, and enjoy doing it. >> they attracted the attention of young entrepreneurs looking to expand their company. >> it's time to give you a tour of where we wo

one bright spot for wework, net new desks. occupancy a key metric for wework is down 5%. now averaging 79%there south bank owning around 80% of the company is working on a turn around plan. they are divesting some of those noncore assets among other things looking for a new ceo after adam neumann's exit on that list, john legere is on that list. information reporting today that softbank, masa son is expected to come here to talk about layoffs. there could be as many as thousands of layoff for wework employees and talking about the company's financials and the plan going forward >> thank you very much so softbank went all in with its rescue-package is there anything to say our next guest doesn't the think so here to explain is eric gordon, professor the university of michigan school of business. nice to see you again, sir great to have you with us. you know, people can go in and save turn around companies that have good business models but your u is that this one doesn't and basically can't be saved >> yeah. you know, if you own wework, if they delivered wework to your off

what went wrong with wework? imran: the challenge is the public market, you know, the market is so volatile. investors are softer. -- short-term oriented. i understand the excitement in private markets. but saying that, a lot of great companies were built in the public market. netflix went public very early. i think it is getting more challenging. they are not interested anymore. that's one of the challenges as well. jason: coming up, we will take you to the second annual securities summit at the 9/11 memorial and museum. also, a preview of the new exhibit there about the hunt for osama bin laden. kailey: this is "bloomberg businessweek." ♪ jason: welcome back to bloomberg businessweek. kailey: the saga is almost over. jason: we hear from the ceo of intercontinental hotels. kailey: the security summit was in new york. jason: it was cybersecurity exports talking about attack prevention and collaboration between the public and the private sectors. we should point out that michael bloomberg is also the chairman of

there are several months where ubs had told wework of the issue, wework actually starts talking to vendors in august about replacing future phone booths with new ones, and actually in september, premiere, the maker of the phone booth, suddenly shuts down without warning. some of its workers are left stranded with no severance. in the background, there are a series of events that lead up to the announcement of the phone booth. that is what we get into in this story. jason: in the saga of wework, we turn from phone booths to a phone guy, who could be the next ceo of this company. john legere is now rumored or confirmed to be at least having discussions for the top job. tell us how that came about and what it may mean for the future of wework. ellen: right. it seems like wework is continuing on the ceo search. john legere is one of many names that they are having under consideration. it seems like wework, to put it in context, is still struggling to find who will be the leader that is going to take them forward out of this really tumultuous time. to take you back a mere two months, they still

i totally concur that and i think wework is that perfect example. with that said, i think wework is encouraging. the capital markets work. when you had to get to the work around corporate governance in the financials, it stopped. retail investors were not hurt and it did not get to the public market for the private market is supposed to be shaken out. i believe if somebody takes a risk on a company and does not do diligence they should lose their money. what this is done in the consequent of wework is not as a much bigger emphasis on the path to profitability, that was not the case in the private market prior to the. >> real quick on the trade situation, the president faces a deadline, november 13 is the deadline he has to decide whether or not to put tariffs on european autos, a lot of people worried about this going into the holiday season seen european products that go up in price. is equity be disruptive in terms of the backdrop? >> it certainly will. the european union says the president will not do it. that is from europe. >> yeah europe is te

wework and uber. rahel joined us. reporting the first quarterly loss now casting doubt on the ce o's posting. a operating loss of $6.5 million compared to a profit of $6.5 million a year ago. suffering a nearly $$9 billion loss last year, they were forced to spend to bail out wework and adam neumann wework fell by 3.4 billion in the quarter. masa son did not mince words >> this announcement is not good at all it is a big negative in the three month quarter result is the size of the negative is probably the first time after the foundation of the business i want you to look at this picture. we are actually in the rough sea. >> softbank's vision fund has vested $88 billion in companies. the value of listed investments including uber and slack fell. but soft bank will go ahead with the launch of a second vision fund saying his valuation of wework was not right but he still believes it is a solid business. he's standing by it. >> he has to >> even with these results >> we'll see you in a bit. >> let's get a check on some o

. >> what does the ipo market look like >> it's been off a little bit and we had weworks and peleton so there's a lot of these companies are now suspect. we have seen uber and lyft the ceo the founder selling off his stock. so there's pessimism among those companies. but we still have other companies coming out you mentioned aramaramco. >> joel shulman, thank you very much. >>> coming up on the show, how fedex went from owing trillions in dollars in taxes, at least billions in dollars of taxes to near 0. >> live from the dubai air show. first on cnbc interview, his take on the on going grounding of rival boeings 737 max jet >>> and then later. >> announcer: today's big number, 75,842, that's how many ford mustangs were sold in 2018. making it the best selling american muscle car last year. beating out the dodge challenger and the chevy camaro >> the pony car wars continues another first on cnbc interview with ford ceo jim hackette about the company's all new electric pony car, kind of. en "rlidexan" ur still ahead whwodwe chge returns right after this ♪ evagpharmacist-recommended m

you don't think that can happen for wework >> it may. i don't know what i do know is a lot of people can do what wework is doing, many far better capitalized in better positions. if you're a new york real estate person, you have a lot of empty space you can turn into shared working spaces to compete with guys at the margin without taking -- >> are you implying they're going back to the core business, cool offices, we're a consumer, happy, also happy because it is not all that expensive, the space, which may be part of the issue. but it is great to work with them, if they focus on just that business, yes. >> do you find they're more productive and efficient because of the space >> feel so cool when you walk in. >> how is the coffee >> it was good i think, yeah >> roger, going back to the point mike just made, if you look at a sell off we have seen in publicly traded companies that came to market this year, many of them growing revenue very strongly, not profitable for the next couple of years, it seems like those losses accelerated on the

there are several months where ubs had told wework of the issue, wework starts talking to vendors in august about replacing future phone booths with new ones, and in september, the maker of the phone booth suddenly shuts down without warning. some of its workers are left stranded with no severance. there are around, series of events that lead up to the announcement of the phone booth. that is what we get into in this story. jason: in the story of wework, we turn from phone booths to a phone guy, who could be the next ceo of this company. rumored to havings now discussions for the top job. tell us how that came about and what it may mean for the future of wework? work ist seems like we continuing on the ceo search. john legere is one of many names under consideration. put its like wework, to in context, is still struggling to find who will be the leader that will take them forward out of this mulcher was time. to take josh out of this tumultuous time. they still had the cofounder and ceo at the head of the company. when he stepped down, they replaced him with co-ceos who were existing

as the japanese conglomerate pushes ahead with its wework rescue, we look at the problems facing its vision fund. and on the markets... fairly mixed today, as you can see. in asia, up slightly for hong kong andjapan in asia, up slightly for hong kong and japan following a pretty muted session on wall street the night before. federal prosecutors in the us are investigating six pharmaceutical companies for potential criminal charges in connection with shipping big quantities of opioid painkillers that contributed to a healthcare crisis, according to official documents. its being reported that five of the companies have received subpoenas from the us attorney's office in the eastern district of new york as part of the investigation. vivienne nunis has more from new york. according more from new york. to reports, federal prosecutors according to reports, federal prosecutors are trying to find out whether pharmaceutical companies here violated the controlled su bsta nces here violated the controlled substances act. this law requires the pharmaceutical industry to closely monitor commonly

it bailed out wework recently. the firm, which softbank now controls has plummeted from $50 billion in value tojust $8 has plummeted from $50 billion in value to just $8 billion in 2019. vivian nunes has more from new york about softbank latest challenge. from my property to a humiliating bailout, wework faced a cash crunch last month and still softbank came to the rescue. now investors will be looking at how much damage wework has caused to softbank‘s bottom line, and what it plans to do next. there are things they might want to try to shrink the company a little bit, growa try to shrink the company a little bit, grow a little more slowly and focus on the profitability, or path to profitability. you've gone from a $47 billion valuation do something south of $8 billion. things have happened very quickly, i think softbank needs to show they can do something very quickly as well. softbank fuelled wework‘s rapid expansion with a seemingly and less pot of cars, the ceo, adam neumann was bailed out and offered a $1.

of wework by more than 80%. they have agreed to a $9.5 billion rescue deal and softbank plans to push ahead with an offer of 3 billion. interesting. let's look at markets. it is the thanksgiving day break in the us tomorrow so no action on wall street on thursday at all but today we will get some indication as to how the birds biggest economy is doing, we'll get home sales numbers, durable goods and the big ticket items that people buy, us factory orders and that kind of thing. that will give us a sense how the us economy is faring. let's have a look at the european markets today. they are headed, not all headed higher, the ftse 100 is but elsewhere are headed, not all headed higher, the ftse100 is but elsewhere in germany and france, a little bit lower. not much big corporate stories moving markets today as we saw earlier this week with big deals announced both on monday and tuesday. federal prosecutors in the us are investigating six pharmaceutical companies for potential criminal charges, in connection with s

while wework's board seeks to work out its future. we begin today with the markets and dom chu has the numbers. >> i appreciate the puniness for sure let's take a look at the numbers so far it's been green pretty much all session long but it's fairly tight the range. at the highs of the day, the dow industrial's up about 105 points at the lows of the day, we were up 7 so yes, marginally higher to higher most of the day so far, the s&p 500 tight range as well. the nasdaq just about flat so that's the way the state of play is shaping up right now retail has been a huge focus this week. a slew coming out with the results and on balance you can see today it's up a percent but over the week, consumer discretionary as a sector in the s&p, one of the worst performers and by the way, this particular etf that tracks retailers is down about 2% over the course of this last week so maybe on balance, retail not as positive as we thought earlier on and then if you take a look at the stock of the day consumers still in focus a staples company. smuck

the troubles are not ending for wework. the company is drawn scrutiny from the sec about whether the company violated financial rules in the run-up to its sale ipo. and let's three home buyers are finding global cities less welcoming. why london, vancouver, new york, and hong kong are losing cache with wealthy international buyers. the willow bay, want a trade war takes another turn. the trump administration signaling that negotiations with china are entering the final stages. larry kudlow told reporters we are coming down to the short strokes. and in communication with beijing every day. that does not mean another breakdown will not happen or be averted. tom orlik is with us with the latest. course feels hourly at this point. we know there are daily conversations, so when we talk about what could bring down, do we begin to feel that we are on firmer footing? tom: the signals coming out of the white house, both from larry kudlow, and from commerce , suggestswilbur ross we are closing in on a phase one deal. that is certainl

the minute adam neumann was ousted from wework as ceo, there was talks between legere and wework about him joining as ceo. you know, his friend and business partner before he left spri sprint, marcel cloure -- liz: do you purpleosely mispronounce? >> you like to overpronounce french stuff so much. i want to hear you say it. anyway, we do know given their relationship, there has been some talks. now, i can't tell you whether this is going to happen. i don't know how preliminary or how serious they are. the companies aren't commenting. we have gotten this independently confirmed from people close to the companies. so i'm not saying this is going to happen, not saying it's not going to happen. there's a lot of ways it makes sense in the sense leg efrmd er gone. softbank is running wework. masayoshi son is known to pay people. but it's wework and it's what's known as an s-show. not going to say the word. it's a very difficult situation. again, i can't tell you the seriousness of these talks. liz: okay. >> i can only tell you they have been talking. liz: charlie, thank you. charlie gasparin

broke, followed by wework. broke, followed by wework. it went broke. tell me about a model that works when every player in the space has gone broke. it is just a question of when. sonali: with this overgrowth, what do you thing about office prices? do you think prices are just going to collapse across new york? sam: i don't know whether prices are going to collapse. the real estate industry has never been healthier from a financial point of view then it is today. on, we are talking about hudson yards, brookfield, penn central. you are talking about yesterday, jamie dimon announces a second building. the good news is he's not going to have any competition because there's going to be nobody else around him. but the bottom line is you are talking about enormous new supply of space, and except for ,o-working, which, by the way restaurants in san francisco were doing co-working in the day , soho club is now doing a space , there's a club in chicago that now does co-working during the day, there's no barrier to entry. the question is, can you buy good enough

coming up next, we look at wework. this is bloomberg. ♪ caroline: live from bloomberg world headquarters in new york, i am caroline hyde. joe: i am joe weisenthal. romaine bostick is on assignment. caroline: snapshot of the u.s. stocks closing pretty muted in terms of volumes and mood. trade tensions weighing on wall street. stocks picked up slightly in concerns that the u.s. and china's trade deal is still struggling. head, hunts for a new they may be looking at someone from t-mobile for a top job. fromkong looks to recover one of its most violent days since the protests started in june. joe: let's get right into the hong kong protest. for more, let's welcome bloomberg's shery ahn. what are you going to be watching next in terms of this? after the intensifying protests, we heard carrie lam coming out. it didn't sound like there was anything new. is there any move that somebody could play that could disperse the tensions? shery: she seemed pretty defiant, especially when it comes to that violence leading to any resol

brad: masayoshi son sounding embarrassed, saying he made mistakes with wework. but then you see a cfo doing interviews, saying nothing will change with the vision fund. what is happening at softbank and what kind of lessons have they learned? rana: it feels like 1999 to me. it feels very frothy. i think the fact a fund as big and bloated as softbank exists in its current form is kind of a marker of where we are in the technology sector at the moment. there is so much debt out there in the books. softbank, a lot of people think this maybe should have been bigger. i don't think just saying we are going to cut some costs and wework is suddenly going to become profitable is really realistic. it's interesting because wework is actually taking collateral damage where the real estate was located. you are seeing property prices in london and parts of new york being affected by this. i see this really as a tipping point for the sector in general. i think it is part and parcel of company staying private for a long time, having their valuations bid up and up by larger vent

if he wants to go there, this thing could get very ugly for wework. i'm not saying she will though -- liz: the best thing that ever happened to jamie dimon and jpmorgan is that he passed on them and took softbank. >> i think the best thing was, actually, they put all the information in that prospectus, which made people question the company. liz: charlie, thank you very much. now the dow is down 105 points. the nasdaq damage is the only big index on track for a brand new record. ♪ ♪ ♪ my body is truly powerful. i have the power to lower my blood sugar and a1c. because i can still make my own insulin. and trulicity activates my body to release it . . with type 1 diabetes or diabetic ketoacidosis. don't take trulicity if you're allergic to it, you or your family have medullary thyroid cancer, or have multiple endocrine neoplasia syndrome type 2. stop trulicity and call your doctor right away if you have an allergic reaction, a lump or swelling in your neck, or severe stomach pain. serious side effects may include pancreatitis. taking trulicity wit

wework says job cuts will start this week. the struggling office sharing startup said that cuts will improve efficiency and accountability. bloomberg has learned that about 2000 jobs will be eliminated, some 16% of wework's global workforce. ellen huet joins us with more. what do we know about these layoffs and where it fits into their broader strategy of slimming down, if you will? effort that has been going on in bits and pieces but it sounds like based on this new memo that the executive chairman sent this morning, it is going to start "in earnest in the u.s. this week." they had already been starting to have some layoffs overseas and there have been some cuts in side businesses like meetup and other side businesses they owned, but it seems like maybe this week is going to be the big time. they had originally scheduled an all hands meeting for tuesday and another part of the memo says the meeting will be moved to friday. in order to, i think, give time for all of the job cuts to percolate through the company this week. on f

wework and t-mobile have not responded to requests seeking comment. softbank declined to comment >>> back in september on closing bell, cnbc contributor said legere would be the perfect candidate to lead wework listen >> who is there out there? somebody who is close to is softbank people. trusted, loved by them whose all dressed up and ready to go pretty soon is john legere you heard it here first. i think there's some rumors that are starting to spread that he's the perfect guy for the job. you nailed it. they seem to be talking. >> you have to be nice to me i was lucky. where ever john legere goes, that's the place to buy. i thought that weworks were circling the drain until this kind of news i'm buy world com if john legere was there. >> was this a hunch or was it signals? >> i've known john a long time i've just been tracking him. he's got a contract that will be expiring pretty soon it's december 9th. any number was was formally named president was promts proma couple months after the deal might get to the ceo job this was not much of a hidden se

it happened before the wework stuff. and it was because we started recognizing that this is a business that's expected to return on capital. this is a business that we are enormous transactions, but at very, very low margins and if you're running a big scale global low margin business, you have to start acting like it. >> do you remember, when we would talk in years past, you talked about uber being like amazon. >> mm-hmm. >> and i always thought that one of the reasons you liked that comparison beyond the ultimate success of amazon was that for a very long time amazon was allowed and given license by the market, if you will, not to make profits. having said that, they weren't losing on the order of $7 billion a year, which is the number that uber has lost. and so the question, though, that i have about that is do you think it's fundamentally changed the ambition of the company in terms of what it ultimately becomes? >> no. the reason why we admired amazon was, one, they built a great company and they have gone from book

let's talk about wework. what effect is the wework crisis having on property markets both in new york, london, and elsewhere? wework has received obviously lots of attention. i would like to remind everybody that we have about 8000 flex space operators that are delivering their services to corporate clients and occupiers overall, so we work has had a great run in making themselves prominent and raising the attention for that sector, but others are there as well. i do not think the impact of the current situation is that strong. is overall flex-based market around the offices world. it will continue to grow significantly over the next 10 years. wework is still there and what they want to do, others will do. i do not think this is any kind of turning point to the cycle, just because of wework. in many buildings we have seen wework acting as an anchor investor, they are an anchor in that building and as a result of which i kind of wonder what happens now that we work is not going to take as much space on board,

joel: so i think my view of the wework model, and i am not commenting on wework as a se, but i think the model of signing long-term leases with landlords where you do not own the building, and then having short-term revenues from club memberships is a very significant mismatch. i think they started to realize that many years later. but they had signed so many leases that go out 5, 10, 15 , 20 years, but their membership at any given moment is monthly renewal membership. the ability to make sense of those is a challenge. so i think on the balance sheet , and p&l statement, they got it wrong. i think their concept of, would people want to work in co-working spaces or the enterprise business they have more recently developed makes some sense, but it is probably better to own buildings and then have the short-term revenues. if there was any blip in the capital markets or the economy, and people do not renew their memberships they are stuck with , these long-term leases. i think that was the real conundrum that i felt that kind of a model did not make sense. taylor: that was alexandria re

it was more than just what was happening at wework. there were a couple of other billion that occurred. overall, he is still up on the vision fund. he looked at this and said we will have 15 massive winners, 15 awful losers like wework and the rest of them are doing so-so. his investment style is more about having massive winners like alibaba, putting in $20 million and it's worth however many billion now, in order to drive returns. while they talk about more conservative investments, what he really wants to do is find really big winners to find returns. the bigger issue for the company, which is kind of a sideshow, they have a big deal out there right now getting challenged by state ag's. t-mobile is trying to bribe ash -- t-mobile is trying to buy sprint. t-mobile is cash burning. they have to go to court. if they lose that, they are kind of stuck with sprint. that would be bad. if that deal can get approved, if t-mobile can buy sprint and get that off of his back, it removes the debt from the balance sheet. he's got a great asset in

haidi: masayoshi son is paying the price from wework to uber. the sopping founder has seen his fall after his strategy of aggressively backing technology pioneers backfired. tumble to roughly 13 $1 billion a. that is according to the bloomberg billionaires index. facebook has expanded its production to vietnam and will manufacture its oculus rift virtual-reality headsets in the country, according to the facebook asia-pacific vice president of policy. facebook is seeking partners to manufacture other products in vietnam. and, huawei expects shipments to grow 20% next year even if it is blocked from the google software. this suggest the trump administration's efforts to contain the company's rise may not be working. the president of corporate strategies says the company can rely on its massive home market and in-house software to keep the division humming. those are the top global tech stories of the day. shery: more on huawei as the u.s. trade with china plunged in september following fresh tariffs. both countries aiming to ease tensions with wil

wework employees to take over the company. and this could last into next year. this is a long drawn out, get a process, there was some talk about reducing how much money adam neumann could sell into a stock, we understand and first reported last week, i can confirm again those terms have not changed despite the fact that people voting are getting rich by being able to sell a billion dollars of stock into the tender offer and become a billionaire after the company was almost went bankrupt before the softbank bailout. that has not changed. a deal is a deal, that's how we look at it. what we do understand there has been technical changes around the edges for tickly to wework employees. the options to sell into this, the strike price and the options were set high and apparently adam neumann convinced softbank to get those options at a lower strike price. theoretically the numbers, i don't have confirmed, the number went down to $4 a share, if they do the tinder offer in the private markets are selling below $4, you're in the money

so they include companies like uber and wework, and we all know how much financial trouble those two companies are in. the only sector which reported recent gains is the consumer sector, but they only account for about 15% of its portfolio. but i also thought it was interesting that the majority of the recipients are actually in the united states. and here in asia, there is no japanese firm, zero. and that's quite worrying, or disheartening, if you like, because the boss of softbank has long talked about wanting to encourage japanese start—ups, entrepreneurship, but his first vision fund has yet to achieve that goal. thank you so much for that goal. thank you so much for that update on softbank and its vision fund, my colleague and business reporter mariko oi. indian ride hailing app ola, also hello in spanish, has fired the starting gun as it announced plans to launch in london. the announcement came yesterday after authorities refused to grant ubera yesterday after authorities refused to grant uber a new operating licence. for the latest, let's cross to mumbai. how big a threat i

we are confirming that weak is wework is in talks with john legere. it makes a lot of sense for john legere to be considered. he is a other folk character character- a colorful and he could stay on at wework. this is all speculation t-mobile sprint is downd 2.6%. both stocks off lows. that john legere may leave but regulatory concerns. hong kong chaos intensifies. fresh protesting the weight of a student death resulted in live rounds of bullets, tear gas, and arson in the streets. the violent demonstrations were aimed at destructing the money morning commute. it is warned that protesters will >> will not reach their goals. >> if there is wishful thinking that by escalating violence the hong kong government will yield to pressure to satisfy the so-called political demands, violence is not going to give us any solutions to the problems that hong kong is facing. bloombergt's welcome national security team leader. it looks like there is no end. there is more violence in fact. what is the word in washington? seen the violence spike over the weekend and dra

we'll ay a bite of him selling wework to a group of u. mayors. f you bring us in for ten location, we will create 200,000 jobs other the next ten years. br can go bigger and bigger. we want tg you jobs. we'll brung you a place to live. we'll bring education, and this es important, we'll bring corpor americ >> yang: so we get a sense of arisma, his energy, the zeal he brought to these things. till us more about adam neumann. >> he wan raised o a kibbutz. he apparently came from an unhappy home. he talks about that. he served time in the israeli military. he went to baruch. he teamed up with a guy who grew up on a commune i thk in oregon, and they founded wework. they wanted to creation, you know, a company that they said ultimately would elevate the world's consciousness. i don't know to theegree i was sincere, but they said they wanted to create a place that would revolutionize the workplace and bring people together andpark creativity and create entrepreneurship. >> yang: what he wass doing subletting office space, but he sold it as you say as a

wework has taken the headlines of the money softbank put into wework in its failed attempt to take the company public. look at some of the publicly traded companies in the vision pond -- fund portfolio. names that had been shining stars for softbank. this chart shows shares of uber slack and garden, uber, the white line, and slack is the blue line, have really seen major declines. more than 30% in the quarter ending september 30. softbank has big stakes in those companies. another company is the wireless carrier sprint. 3.5 million shares, 84% of the company. on the cusp of being purchased by t-mobile. that deal was given a green light. the sec, regulators. some good news for softbank which has a lot riding on this deal. u.s. states have brought a challenge on that deal on antitrust grounds. the trial is due to start in december. we will hear about both of those things on wednesday about the underperforming investment and the deal between sprint and t-mobile. taylor: thank you. for more on softbank's vision fund and the venture-capital landscape, i'm joined by mark cannice. he is a pro

wework layoffs are set to begin this week in the u.s.. are lookingawmakers to make life harder for the chinese owners of the video app tiktok. and, trucks before taxis. will a driverless fleet give truckers more time at rest stops? first, to our top story. start says job cuts will this week. they said cuts will improve efficiency and accountability. bloomberg has learned that about 2000 jobs have been eliminated 's global 60% of wework workforce. ellen huet joins us with more. what do we know about these layoffs and their broader strategy of slimming down, if you will? ellen: it seems, based on this new memo that the executive chairman sent this morning, it --going to start "in ernest going to start " in earnest in the u.s. this week." it seems like maybe this week is going to be the big time. they had originally scheduled an all hands meeting for tuesday and another part of the memo says the meeting will be moved to friday. on friday, we expect a five-year plan of the company. taylor: do we have any indication of what that five-year plan

let's talk about wework, and you have to look at softbank, softbank valuing the company up to 47 billion companies until the realization that really happens in the earnings are not here. >> i both the more not for the value that the place, that's bad investment judge it, i fault them for bad exercise of corporate governance. they let capital structure come in with dual class shares and they had no control over the company and virtually no independent directors in adam neumann and the public filing had the ability to control company not only through his life but for three years after he died, subsequently to their losing a fortune on paper and then wework situation and bailing it out, they now announced publicly they will have no more do under dual class shares which is been more both for the founders and in some cases 20 - 1 ratio. >> the average investor doesn't have voting power. >> to those circumstances, no voting power. it is silly. they will not insist on independent directors and exercising what they should've done a long time ago and that's why this got out of hand. >> i want to