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| As Businesses Close, WeWork Tries to Lure Workers Back | As Businesses Close, WeWork Tries to Lure Workers Back |
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| In the fight against the spreading coronavirus, countless businesses, restaurants and bars have temporarily shuttered to stop people from congregating. | In the fight against the spreading coronavirus, countless businesses, restaurants and bars have temporarily shuttered to stop people from congregating. |
| But WeWork, which operates shared work spaces, has kept most of its locations open. As of Tuesday, WeWork’s website said that only two of its co-working offices in North America were closed and that none were closed in Europe. The last public communication about the virus from the company to its customers, which include freelancers, small businesses and large corporations like Amazon, was 12 days ago, in which it listed the precautions it was taking. WeWork has allowed employees who normally staff its locations to work from home, but this week it started to entice some to go in with $100-a-day bonuses, according to an internal memo reviewed by The New York Times. | But WeWork, which operates shared work spaces, has kept most of its locations open. As of Tuesday, WeWork’s website said that only two of its co-working offices in North America were closed and that none were closed in Europe. The last public communication about the virus from the company to its customers, which include freelancers, small businesses and large corporations like Amazon, was 12 days ago, in which it listed the precautions it was taking. WeWork has allowed employees who normally staff its locations to work from home, but this week it started to entice some to go in with $100-a-day bonuses, according to an internal memo reviewed by The New York Times. |
| One thing is clear: A widespread shutdown could deal a grievous blow to WeWork, a once celebrated start-up that was already struggling. | One thing is clear: A widespread shutdown could deal a grievous blow to WeWork, a once celebrated start-up that was already struggling. |
| In a turbulent past six months, WeWork called off an initial public offering as investors balked at its losses and corporate governance, laid off hundreds of employees, changed its top leadership twice and was bailed out by SoftBank, WeWork’s dominant shareholder. SoftBank, a Japanese conglomerate that runs a large technology investment fund, stepped in after WeWork nearly ran out of money. But its cash outflows are expected to be even greater this year as it completes an expansion that will almost double its locations. | In a turbulent past six months, WeWork called off an initial public offering as investors balked at its losses and corporate governance, laid off hundreds of employees, changed its top leadership twice and was bailed out by SoftBank, WeWork’s dominant shareholder. SoftBank, a Japanese conglomerate that runs a large technology investment fund, stepped in after WeWork nearly ran out of money. But its cash outflows are expected to be even greater this year as it completes an expansion that will almost double its locations. |
| Though most of WeWork’s locations are officially open — the company said it provided essential services that many state and local governments had allowed to continue — almost no one is in them. In Midtown Manhattan, home to several WeWork spaces, the usual heavy flow of customers has dwindled to a trickle, according to two employees who work in or are monitoring those locations, and who asked not to be named because they feared losing their jobs. | Though most of WeWork’s locations are officially open — the company said it provided essential services that many state and local governments had allowed to continue — almost no one is in them. In Midtown Manhattan, home to several WeWork spaces, the usual heavy flow of customers has dwindled to a trickle, according to two employees who work in or are monitoring those locations, and who asked not to be named because they feared losing their jobs. |
| The coronavirus pandemic is depressing demand for shared work space, and the looming recession could prompt many freelancers and small businesses, which make up much of WeWork’s customer base, to save money by working from home — something many white-collar professionals worldwide are quickly becoming accustomed to. WeWork customers can sign up for space month to month, allowing them to leave quickly. The company, by contrast, has yearslong leases with landlords. | The coronavirus pandemic is depressing demand for shared work space, and the looming recession could prompt many freelancers and small businesses, which make up much of WeWork’s customer base, to save money by working from home — something many white-collar professionals worldwide are quickly becoming accustomed to. WeWork customers can sign up for space month to month, allowing them to leave quickly. The company, by contrast, has yearslong leases with landlords. |
| “From all directions, WeWork looks dark,” said Vicki Bryan, chief executive of Bond Angle, a research firm. “This was true before we had this historic pandemic crisis. But now those levers it could have pulled, to at least buy some time, have gone.” | “From all directions, WeWork looks dark,” said Vicki Bryan, chief executive of Bond Angle, a research firm. “This was true before we had this historic pandemic crisis. But now those levers it could have pulled, to at least buy some time, have gone.” |
| And as it contends with the outbreak, its financial position could weaken because of an internal struggle among its shareholders. | And as it contends with the outbreak, its financial position could weaken because of an internal struggle among its shareholders. |
| SoftBank last week threatened to walk away from a tender offer to buy $3 billion of existing shares from other WeWork shareholders. If that transaction doesn’t happen, WeWork would not receive $1.1 billion in debt financing that is part of SoftBank’s rescue, according to a person briefed on the deal, who was not authorized to speak publicly about the matter. | SoftBank last week threatened to walk away from a tender offer to buy $3 billion of existing shares from other WeWork shareholders. If that transaction doesn’t happen, WeWork would not receive $1.1 billion in debt financing that is part of SoftBank’s rescue, according to a person briefed on the deal, who was not authorized to speak publicly about the matter. |
| SoftBank in recent months has plowed $1.5 billion into the company in return for new stock, and says it stands behind another $4 billion of debt financing. But if SoftBank walks away from the tender offer and withdraws the $1.1 billion loan, landlords that lease office space to WeWork may begin to doubt SoftBank’s commitment to the business. | SoftBank in recent months has plowed $1.5 billion into the company in return for new stock, and says it stands behind another $4 billion of debt financing. But if SoftBank walks away from the tender offer and withdraws the $1.1 billion loan, landlords that lease office space to WeWork may begin to doubt SoftBank’s commitment to the business. |
| SoftBank is facing its own pressures. The company and its $100 billion Vision Fund have stakes in many young companies that were struggling well before the virus hit. In an effort to allay the concerns of investors, SoftBank said on Monday that it would sell assets worth up to $41 billion to buy back $18 billion worth of shares and pay down debt. Its shares soared Tuesday on the news but were still down by a third from the high they reached last month. | SoftBank is facing its own pressures. The company and its $100 billion Vision Fund have stakes in many young companies that were struggling well before the virus hit. In an effort to allay the concerns of investors, SoftBank said on Monday that it would sell assets worth up to $41 billion to buy back $18 billion worth of shares and pay down debt. Its shares soared Tuesday on the news but were still down by a third from the high they reached last month. |
| “WeWork is not SoftBank’s only drama child,” Ms. Bryan of Bond Angle said. | “WeWork is not SoftBank’s only drama child,” Ms. Bryan of Bond Angle said. |
| SoftBank’s new hardened stance toward WeWork could be a negotiating tactic aimed at forcing other investors, including Benchmark Capital and Adam Neumann, WeWork’s co-founder and former chief executive, to accept a lower price. | SoftBank’s new hardened stance toward WeWork could be a negotiating tactic aimed at forcing other investors, including Benchmark Capital and Adam Neumann, WeWork’s co-founder and former chief executive, to accept a lower price. |
| The other shareholders are fighting back. On Sunday, two WeWork board members — Bruce Dunlevie, a founding partner of Benchmark Capital, and Lew Frankfort, the former chief executive of Coach, who make up a board committee created last year to evaluate its financing options — said in a statement that SoftBank was “obligated to consummate the tender offer” and that “its excuses for not trying to close are inappropriate and dishonest.” Benchmark, a prominent Silicon Valley venture capital firm, applied to sell its entire WeWork stake in the tender offer, according to the person briefed on the deal. Mr. Dunlevie did not respond to a request for comment. | The other shareholders are fighting back. On Sunday, two WeWork board members — Bruce Dunlevie, a founding partner of Benchmark Capital, and Lew Frankfort, the former chief executive of Coach, who make up a board committee created last year to evaluate its financing options — said in a statement that SoftBank was “obligated to consummate the tender offer” and that “its excuses for not trying to close are inappropriate and dishonest.” Benchmark, a prominent Silicon Valley venture capital firm, applied to sell its entire WeWork stake in the tender offer, according to the person briefed on the deal. Mr. Dunlevie did not respond to a request for comment. |
| If SoftBank walks away from the offer and WeWork doesn’t get the loans it is counting on, the company could be in peril, analysts say. | If SoftBank walks away from the offer and WeWork doesn’t get the loans it is counting on, the company could be in peril, analysts say. |
| Updated June 12, 2020 | Updated June 12, 2020 |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. |
| Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. | Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
| The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| “Business disruption related to the global recession, spread of coronavirus and uncertainty surrounding SoftBank’s longer term commitment to WeWork has placed added pressure on the long-term viability of the company,” Standard & Poor’s said in a statement on Monday to explain why it was downgrading WeWork’s credit rating further into junk status. WeWork’s bonds have plunged to levels that suggest investors believe a default is likely. | “Business disruption related to the global recession, spread of coronavirus and uncertainty surrounding SoftBank’s longer term commitment to WeWork has placed added pressure on the long-term viability of the company,” Standard & Poor’s said in a statement on Monday to explain why it was downgrading WeWork’s credit rating further into junk status. WeWork’s bonds have plunged to levels that suggest investors believe a default is likely. |
| An immediate problem for WeWork is convincing people that the company is responding appropriately to the coronavirus outbreak. Some employees and customers have questioned WeWork’s decision to keep locations open. | An immediate problem for WeWork is convincing people that the company is responding appropriately to the coronavirus outbreak. Some employees and customers have questioned WeWork’s decision to keep locations open. |
| In a memo sent on Sunday to employees in the United States and Canada, WeWork’s chief operating officer, Shyam Gidumal, said the company had been “designated an essential business under orders we have reviewed.” | In a memo sent on Sunday to employees in the United States and Canada, WeWork’s chief operating officer, Shyam Gidumal, said the company had been “designated an essential business under orders we have reviewed.” |
| Asked about the memo, Nicole Sizemore, a company spokeswoman, said under New York State’s order, companies providing mail and shipping, security and storage — services that WeWork provides — are considered essential. “WeWork is a service provider, and we have an obligation to keep our buildings open,” Sandeep Mathrani, WeWork’s chief executive, and Marcelo Claure, executive chairman, said in another company email last Wednesday. | Asked about the memo, Nicole Sizemore, a company spokeswoman, said under New York State’s order, companies providing mail and shipping, security and storage — services that WeWork provides — are considered essential. “WeWork is a service provider, and we have an obligation to keep our buildings open,” Sandeep Mathrani, WeWork’s chief executive, and Marcelo Claure, executive chairman, said in another company email last Wednesday. |
| WeWork, however, may be having problems persuading employees to work at its locations. In his memo, Mr. Gidumal said that workers who went in would get $100 a day, up to $500 a week, and that the bonuses would be paid in a lump sum monthly. The money was meant to be “in recognition of our community employees’ willingness to support our members by keeping our buildings open and operating during these extraordinary times,” the memo said. | WeWork, however, may be having problems persuading employees to work at its locations. In his memo, Mr. Gidumal said that workers who went in would get $100 a day, up to $500 a week, and that the bonuses would be paid in a lump sum monthly. The money was meant to be “in recognition of our community employees’ willingness to support our members by keeping our buildings open and operating during these extraordinary times,” the memo said. |
| One of the WeWork employees monitoring Midtown locations said the bonus offer put workers in the difficult position of taking on a potential health risk for a few hundred dollars. This person said lower-paid staff who face financial hardships would be more likely to come in than other employees. | One of the WeWork employees monitoring Midtown locations said the bonus offer put workers in the difficult position of taking on a potential health risk for a few hundred dollars. This person said lower-paid staff who face financial hardships would be more likely to come in than other employees. |