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Report: WeWork negotiating with banks to arrange debt, equity financing

WeWork Cos. Inc. is in the early stages of discussions with banks to arrange financing that could help the company prevent an impending cash crunch, the New York Post reported, citing unnamed sources.

JPMorgan will lead the financing for the coworking startup's parent, The We Co., with Goldman Sachs also participating in the talks, according to the report.

The financing could be in the form of debt, equity or a combination of both, a source close to the situation told the publication. One option has the banks arranging a loan of at least $2 billion, one source reportedly added.

Spokespersons for JPMorgan and The We Co. did not comment on the matter. Goldman did not immediately answer requests for comment sent by the Post.

Separately, three top WeWork executives said at an Oct. 3 staff meeting that the company is set to implement job cuts by the end of October, Bloomberg News reported, citing people who attended the meeting. The planned job cuts follow the company's recent decision to delay its planned IPO indefinitely amid investor concerns over its valuation and corporate governance.

The job cuts could come to approximately 2,000, accounting for about 16% of the company's global workforce, people familiar with the discussions told Bloomberg. The executives at the meeting reportedly said WeWork would still continue to grow, albeit at a slower pace.

Bloomberg noted that the executives privately considered selling Conductor, Managed by Q, Meetup, a private jet and a large stake in female-focused coworking startup the Wing.