AM I NEXT? THE HANDWRITING IS ON THE WALL AT CATHOLIC HEALTH (03/04/22)

MARCH 4, 2022 — 34 IT AND SUPPORT WORKERS LAID OFF

According to Catholic Health, 34 jobs in Information Technology and other corporate service positions were eliminated.

Mark Sullivan, president, and CEO of Catholic Health noted, "Affecting a person’s livelihood through a workforce reduction is an extremely difficult decision to make. Our system, like all healthcare providers in Western New York, is being faced with unprecedented financial challenges from pandemic recovery to accelerating labor costs. The lack of recognition and action by local insurance companies and some elected officials makes these decisions just the beginning of what is to come for other health providers in our region. We hope those in power have the courage to address these challenges immediately and realize this current path will lead to limiting access to care in our region, which would be truly unfortunate."

NOVEMBER 23, 2019 — 200 EMPLOYEES TARGETED IN DEC/JAN LAYOFF

Catholic Health has announced a reduction in force of about 200 employees, half of which will be the result of employee buy-outs and early retirement offers. Layoffs will be phased over the coming two months.

According to Catholic Health's President and CEO Mark Sullivan…

"We are taking a methodical and measured approach to deal with the constant state of change health care providers across the country are experiencing while ensuring we continue to develop and deliver the type of care our patients have come to expect. This means reinventing how we deliver the highest quality care to our community now and in the future.

“Decisions like this are never easy, and we will support our associates affected by these changes. While difficult, however, the proactive steps we are taking today — along with ongoing efforts to transform care, expand needed services, and address inadequate reimbursement with area payers that have not kept pace with the changes in healthcare delivery — will make us stronger long-term.”

SEPTEMBER 22, 2019 — Original post …

The handwriting is clearly on the wall for the employees of Buffalo-based Catholic Health whose mid-year operating deficit is now approaching $16 million dollars in a difficult health care environment. The company has implemented a hiring freeze on all positions with the exception of pre-approved clinical staffing. CEO Mark Sullivan noted that the hiring freeze is one facet of the company’s cost reduction initiatives and describes it as a “course correction.” Further adding, “Besides reductions in the way we are compensated for the care we provide, these losses are further compounded by the fact that annual reimbursement increases we receive from insurers fall significantly below typical healthcare inflation.”

Like most health care providers, Catholic Health, with five hospital campuses, a long-term care site, a home care division and outpatient sites, is experiencing a declining patient census and the ramifications of significantly reduced insurance reimbursements, especially those associated with Medicare and Medicaid.

According to a media spokesperson, "While we continue to see market share growth in various areas, with more patients coming to Catholic Health because of our high quality, we are continually assessing the needs of our organization and our workforce as healthcare continues to evolve."

According to the industry lobbying group American Hospital Association, “Medicare and Medicaid accounted for more than 60 percent of all care provided by hospitals. And, “payments from the two government programs were $76.8 billion less than the cost of care in 2017” while “Hospitals provided another $38.4 billion in uncompensated care in 2017 for the uninsured or patients who didn't pay their portion of a bill.”

One can only imagine the effects of the single-payer system now being labeled by 2020 presidential candidates, falsely, as “Medicare for All.” Each of the proposals, while somewhat different, would eliminate private insurers and allow the government to dictate everything from care levels to staffing.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? IS THE HANDWRITING ON THE WALL AT WEWORK (08/24/23)

AUGUST 24, 2023 — BANKRUPCY EMINENT?

From the Wall Street Journal …

BlackRock, King Street, Brigade, and other firms are holding preliminary discussions about WeWork’s future, as the company tries to reduce its rent costs.

A group of Wall Street firms that lent hundreds of millions of dollars to WeWork is exploring the possibility of a bankruptcy filing that could help the company exit from expensive office leases, one of several options under discussion, according to people familiar with the creditors’ talks.

AUGUST 12, 2023 — “GOING CONCERN LETTER” PRESAGES MAJOR PROBLEMS?

According to an SEC filing…

Item 1A. Risk Factors

Our losses and negative cash flows from operating activities raise substantial doubt about our ability to continue as a going concern.

As a result of our losses and our projected cash needs, which have been impacted by the recent increases in member churn, combined with our current liquidity level, substantial doubt exists about the Company’s ability to continue as a going concern over the next 12 months.

Our ability to continue as a going concern is contingent upon successful execution of our management’s intended plan over the next twelve months to improve the Company’s liquidity and profitability, which includes, without limitation:

• Reducing rent and tenancy expense by taking additional restructuring actions and negotiating more favorable lease terms.

• Increasing revenue by reducing member churn and increasing new sales.

• Controlling expenses and limiting capital expenditures.

• Seeking additional capital through the issuance of debt or equity securities, or the sale of assets.

There can be no assurance that any such measures would be successful. If we are not successful in improving our liquidity position and the profitability of our operations, we may need to consider all strategic alternatives, including restructuring or refinancing our debt, seeking additional debt or equity capital, reducing or delaying our business activities and strategic initiatives, or selling assets, other strategic transactions and/or other measures, including obtaining relief under the U.S. Bankruptcy Code.

In addition, the perception that we may not be able to continue as a going concern may cause members, landlords and others to choose not to do business with us due to concerns about our ability to meet our contractual obligations.

If we seek additional financing to fund our operations and there remains substantial doubt about our ability to continue as a going concern, our financing sources may be unwilling to provide additional funding to us on commercially reasonable terms or at all.

In addition, if we issue in the future audited financial statements with an audit opinion that includes going concern or similar qualifications or exceptions, it could result in, among other things, an event of default under our Credit Agreement and indentures governing our secured notes, unless waived. The consolidated financial statements do not include any adjustments that may result from the outcome of this going concern uncertainty. Such adjustments could be material.

JANUARY 23, 2023 — 300 LAYOFFS

WeWork plans to cut 300 employees globally as the coworking giant deals with dwindling cash reserves and the possibility of loan defaults.

The company is continuing with its efforts to optimize its real estate portfolio and streamline operations, resulting in a reduction in force of 300 employees in an effort to conserve cash.

NOVEMBER 10, 2022 — CLOSING 40 LOCATIONS

“The company has announced it is closing about 40 underperforming locations in the United States, with most closures scheduled for November 2022, in an attempt to become profitable.

OCTOBER 9, 2019 — 500 INFORMATION TECHNOLOGY JOBS IN AT RISK

According to a published report,”WeWork expects to shed about 500 of the roughly 1,500 software engineers, product managers and data scientists employed in the company’s technology division as a result of layoffs and selling businesses.”

OCTOBER 4, 2019 — WEWORK PLANNING TO LAYOFF UP TO 3000 EMPLOYEES IN TURNAROUND EFFORT.

WeWork co-founder Adam Neumann has relinquished control over the company’s operations to new co-CEOs Artie Minson and Sebastian Gunningham who are moving fast to attempt a turnaround.

This includes the divestment of non-core businesses and the company’s $60 million Gulfstream G650.

The company has indicated that it will cut between 10% and 25% of its existing workforce which is estimated to number approximately 12,500 employees. Expect cuts of 1,000 to 2,000 employees.

SEPTEMBER 28, 2019 — WEWORK CRATERS — TALK OF BANKRUPTCY AND REORGANIZATION

Within weeks of being touted as having a $47 billion valuation, the CEO has been forced out of the company and there is talk of a Chapter 11 reorganization.

A highly critical media pointed out that the CEO was engaged in extreme self-dealing, gross mismanagement, and what some characterize as bizarre behavior.

This does not bode well for employees.

SEPTEMBER 21, 2019 — Original post…

New York, New York-based The We Company (WeWork), a real estate company that provides shared workspaces for technology startups, and services for other enterprises, has suffered a disastrous pre-IPO [Initial Public Offering] roll-out. Starting with fact that the company is more like a REIT (Real Estate Investment Trust) offering temporary office rentals with shared facilities like conference rooms, answering services, mail delivery, computer access, etc., than a technology company. From their Securities and Exchange filing, it appears that the company is centered around the whims of its CEO and major owner and that, in addition to an outrageous valuation, the company seems rife with self-dealing and financial shenanigans.

It is being suggested that before the company is offered to the public, the company should be restructured, closing and selling off all non-core businesses, reducing the employee headcount, and most of all, replacing their dodgy management with qualified individuals with real estate business experience. Perhaps even earning a profit or breaking even before it refiles IPO documents.

Just reading the “Risk Factors” section of their SEC S1 filing should scare most current and potential employees.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT UBER (01/24/23)

JANUARY 23, 2023 — 150 TARGETED AT UBER FREIGHT

Uber Freight is laying off 3% of its workforce in its digital brokerage operation.

Uber Freight, CEO Lior Ron noted, “As you know, the logistics market is currently facing a number of headwinds which have impacted our customer base as well as the overall industry. We accelerated hiring last year within certain areas of our Brokerage business, planning for a different economic reality, but the volumes did not materialize as expected. Uber Freight remains well-positioned to be the global leader in logistics technology and solutions. But the company needs to match our organization and cost structure to the realities of today’s market dynamics.”

FEBRUARY 20, 2020 — UBER TO CLOSE LOS ANGELES, CALIFORNIA OFFICE WITH 85 LAYOFFS

The company announced that it will be closing its Los Angeles customer support office and laying off 85 employees. Part of the workload is scheduled to be outsourced to an overseas call center in Manila,

Philippines. A company spokesperson noted, “In order to focus our resources in our largest customer support centers, we are closing the Uber support office in downtown Los Angeles.”

SEPTEMBER 27, 2019 — 300 JOBS GONE: 238 IN SAN FRANCISCO, CALIFORNIA AND 62 IN PALO ALTO, CALIFORNIA.

The company announced that the layoffs would commence October 10, 2019. It appears that the company suffered a loss of $5.24 billion in the second quarter.

Original post…

San Francisco-based Uber, a peer-to-peer transportation networking company, has announced the layoff of 435 employees, mostly from the product and engineering teams.

According to a company statement, “Our CEO has asked everyone on our management team a simple but important question: if we started from scratch, would we design our organizations as they stand today? After careful consideration, our Engineering and Product leaders concluded the answer to this question in many respects was no. Previously, to meet the demands of a hyper-growth startup, we hired rapidly and in a decentralized way. While this worked for Uber in the past, now that we have over 27,000 full-time employees in cities around the world, we need to shift how we design our organizations: lean, exceptionally high-performing teams, with clear mandates and the ability to execute faster than our competitors.”

“Today, we’re making some changes to get us back on track, which include reducing the size of some teams to ensure we are staffed appropriately against our top priorities. These were incredibly difficult calls as it means some of our employees no longer have a role, specifically around 170 people in our Product group and 265 people in Engineering, which is roughly 8 percent of those two orgs. Our hope with these changes is to reset and improve how we work day to day—ruthlessly prioritizing, and always holding ourselves accountable to a high bar of performance and agility. While certainly painful in the moment, especially for those directly affected, we believe that this will result in a much stronger technical organization, which going forward will continue to hire some of the very best talent around the world.”

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?