1 00:00:00,120 --> 00:00:03,559 Speaker 1: Back in things were looking pretty rosy for We Work. 2 00:00:03,880 --> 00:00:06,360 Speaker 1: The company had just doubled its valuation and raised more 3 00:00:06,400 --> 00:00:09,720 Speaker 1: than four million dollars from investors, and it was using 4 00:00:09,720 --> 00:00:13,400 Speaker 1: some of that cash to buy up smaller companies. When 5 00:00:13,440 --> 00:00:16,919 Speaker 1: We Work bought a company, those employees became We Work employees, 6 00:00:17,200 --> 00:00:19,599 Speaker 1: and they would start coming to the all hands meetings. 7 00:00:20,160 --> 00:00:24,280 Speaker 1: We go to do the Monday night meeting and we 8 00:00:24,320 --> 00:00:26,480 Speaker 1: walk in and the way that it's set up is that, 9 00:00:26,520 --> 00:00:28,560 Speaker 1: you know, there's a stage and it's filled with people. 10 00:00:29,000 --> 00:00:31,880 Speaker 1: That's Joanna Strange. She's going to be our focus for 11 00:00:31,920 --> 00:00:35,080 Speaker 1: the first half of this episode. Up until the moment 12 00:00:35,120 --> 00:00:38,320 Speaker 1: she's describing, Joanna had been working for an architecture company 13 00:00:38,400 --> 00:00:43,000 Speaker 1: called Case. Case made software that helped architects design buildings faster. 14 00:00:43,640 --> 00:00:46,560 Speaker 1: We Worked bought Case, and she became an operations manager 15 00:00:46,840 --> 00:00:49,479 Speaker 1: and she found herself with this job at a company 16 00:00:49,560 --> 00:00:53,200 Speaker 1: she never applied to. Joanna remembers the first all hands 17 00:00:53,240 --> 00:00:55,960 Speaker 1: meeting that she attended, you know, the ones called thank 18 00:00:56,040 --> 00:01:03,000 Speaker 1: God it's Monday. Everyone was too white eyed and too eager, 19 00:01:03,680 --> 00:01:07,120 Speaker 1: and they we chanted, we work, we chanted, we work, 20 00:01:07,240 --> 00:01:10,040 Speaker 1: we work, And then we hit a gong. Oh yeah, 21 00:01:10,160 --> 00:01:11,680 Speaker 1: and I would yell we, and we would say work, 22 00:01:11,680 --> 00:01:12,960 Speaker 1: and then he would say we, and then we would 23 00:01:12,959 --> 00:01:21,280 Speaker 1: say work. And then at some point someone hit a gong. 24 00:01:21,720 --> 00:01:23,480 Speaker 1: I don't know why the gong was there. I don't 25 00:01:23,480 --> 00:01:25,320 Speaker 1: know why it was there. It was there was gong 26 00:01:25,440 --> 00:01:30,160 Speaker 1: hitting We worked. Customs left her feeling bewildered, and I 27 00:01:30,440 --> 00:01:34,200 Speaker 1: go to sit next to the stage and I'm sitting 28 00:01:34,200 --> 00:01:37,560 Speaker 1: with a couple of colleagues and Adam comes out to 29 00:01:37,600 --> 00:01:41,160 Speaker 1: talk and about ten minutes in, my colleague turns to 30 00:01:41,200 --> 00:01:44,399 Speaker 1: me and says, I think this is a fucking cult. 31 00:01:45,959 --> 00:01:52,720 Speaker 1: And I said, possibly, you're listening to Foundering. I'm your host, 32 00:01:52,880 --> 00:01:56,560 Speaker 1: Ellen Hewitt. Last week we talked about WE Worked sparkly 33 00:01:56,720 --> 00:02:00,919 Speaker 1: outward facing image. The company had fast growth, a big valuation, 34 00:02:01,040 --> 00:02:04,200 Speaker 1: a quirky CEO, and a cool looking product and that 35 00:02:04,360 --> 00:02:06,920 Speaker 1: all added up to an exciting public brand that was 36 00:02:06,960 --> 00:02:13,200 Speaker 1: attracting investors, employees, and customers alike. But by some cracks 37 00:02:13,240 --> 00:02:16,000 Speaker 1: and We Works facade were beginning to show. And that 38 00:02:16,080 --> 00:02:19,360 Speaker 1: was because some employees were starting to speak out publicly 39 00:02:19,680 --> 00:02:23,840 Speaker 1: about what they saw as problems inside the company. So 40 00:02:23,919 --> 00:02:26,799 Speaker 1: in this episode, we want to look at lawsuits as 41 00:02:26,800 --> 00:02:29,520 Speaker 1: we got bigger it got into more and more legal 42 00:02:29,520 --> 00:02:33,200 Speaker 1: conflicts with its employees. As a business reporter, I've always 43 00:02:33,240 --> 00:02:36,160 Speaker 1: paid attention to lawsuits because they show you the less 44 00:02:36,160 --> 00:02:38,919 Speaker 1: public side of the company. Not everything that's in a 45 00:02:38,960 --> 00:02:43,079 Speaker 1: lawsuit is true. Sometimes people exaggerate claims or present only 46 00:02:43,120 --> 00:02:47,040 Speaker 1: half the truth, but there's often something there. A lawsuit 47 00:02:47,080 --> 00:02:50,400 Speaker 1: can suggest. What does this company really prioritize? How does 48 00:02:50,440 --> 00:02:53,920 Speaker 1: it treat its employees? There are often gaps between what 49 00:02:53,960 --> 00:03:03,560 Speaker 1: companies say they value and how they really act. This 50 00:03:03,639 --> 00:03:07,200 Speaker 1: episode will look at the stories of two very different employees. 51 00:03:07,639 --> 00:03:10,520 Speaker 1: Both of them felt wronged by We Work. Both of 52 00:03:10,520 --> 00:03:13,120 Speaker 1: them decided to speak out about it, and in return, 53 00:03:13,400 --> 00:03:16,639 Speaker 1: they say they got punished by the company. We've heard 54 00:03:16,639 --> 00:03:19,440 Speaker 1: in previous episodes how fun and chaotic it was to 55 00:03:19,480 --> 00:03:23,080 Speaker 1: work at We Work under normal circumstances. These stories are 56 00:03:23,120 --> 00:03:26,120 Speaker 1: a little different. They come from employees who say the 57 00:03:26,160 --> 00:03:29,520 Speaker 1: company showed a meaner side when things got ugly, when 58 00:03:29,520 --> 00:03:33,320 Speaker 1: there were conflicts. These are early examples of employees trying 59 00:03:33,360 --> 00:03:36,280 Speaker 1: to tell the public that they believed something was not 60 00:03:36,480 --> 00:03:39,520 Speaker 1: right at WE Work. They wanted to interrupt the public 61 00:03:39,520 --> 00:03:42,360 Speaker 1: image that We Work was presenting the world. A startup 62 00:03:42,400 --> 00:03:50,680 Speaker 1: with a booming business that was transforming the workplace by 63 00:03:50,680 --> 00:03:53,280 Speaker 1: the way. We asked We Work and a representative for 64 00:03:53,320 --> 00:03:55,480 Speaker 1: Adam Newman if they wanted to comment on the stuff 65 00:03:55,520 --> 00:03:58,520 Speaker 1: we describe in this episode. They largely declined to comment. 66 00:03:59,160 --> 00:04:02,160 Speaker 1: We Work only at one statement. We Work has zero 67 00:04:02,240 --> 00:04:05,240 Speaker 1: tolerance for discrimination or harassment of any kind, and we 68 00:04:05,280 --> 00:04:07,680 Speaker 1: are committed to moving the company forward and building an 69 00:04:07,760 --> 00:04:10,680 Speaker 1: organization and culture that our employees can be proud of. 70 00:04:11,680 --> 00:04:14,600 Speaker 1: Many employees I spoke to were frustrated by what they 71 00:04:14,600 --> 00:04:18,000 Speaker 1: saw as we Worked lack of transparency. They felt that 72 00:04:18,040 --> 00:04:21,080 Speaker 1: we Work should be transparent because the company said that 73 00:04:21,120 --> 00:04:24,760 Speaker 1: it valued authenticity they have on their site. We are 74 00:04:24,800 --> 00:04:28,120 Speaker 1: always honest and as transparent as we can be. We 75 00:04:28,160 --> 00:04:31,159 Speaker 1: are in this together. We always look out for one another, 76 00:04:32,040 --> 00:04:36,640 Speaker 1: and their employees believed them. A few months into her 77 00:04:36,680 --> 00:04:39,520 Speaker 1: time at We Work, Johanna found herself in a situation 78 00:04:39,560 --> 00:04:42,440 Speaker 1: that she felt was a little shady. At the time, 79 00:04:42,640 --> 00:04:45,800 Speaker 1: like at any company, there was some bureaucratic backlog of 80 00:04:45,839 --> 00:04:49,080 Speaker 1: tasks that needed doing. One of the tasks was approving 81 00:04:49,200 --> 00:04:52,920 Speaker 1: other employees self evaluations so they could receive their annual bonuses. 82 00:04:53,480 --> 00:04:55,719 Speaker 1: But the executive who was supposed to prove them. Didn't 83 00:04:55,760 --> 00:04:57,920 Speaker 1: have time to do it, so he came up with 84 00:04:57,960 --> 00:05:01,760 Speaker 1: an alternative plan. My I'm manager's manager had given me 85 00:05:02,080 --> 00:05:06,680 Speaker 1: his log into all of his stuff. So yeah, this 86 00:05:06,720 --> 00:05:10,159 Speaker 1: story begins with Joanna having an executive's password, but she 87 00:05:10,200 --> 00:05:12,400 Speaker 1: says she didn't steal it. It was given to her 88 00:05:12,520 --> 00:05:17,600 Speaker 1: to do specific work related tasks. But this executive, maybe 89 00:05:17,640 --> 00:05:21,000 Speaker 1: like some of us, reuss a password from time to time, 90 00:05:21,440 --> 00:05:24,080 Speaker 1: It was a password for all of his stuff. Every 91 00:05:24,080 --> 00:05:27,200 Speaker 1: single thing that he had was was, it was encapsulated 92 00:05:27,240 --> 00:05:31,520 Speaker 1: under this one password, and he gave it to me. 93 00:05:31,560 --> 00:05:32,960 Speaker 1: Not so I could do my job, but so I 94 00:05:32,960 --> 00:05:35,080 Speaker 1: could do a job that he either felt too busy 95 00:05:35,240 --> 00:05:37,000 Speaker 1: or too lazy to do. I don't know which one 96 00:05:37,040 --> 00:05:39,960 Speaker 1: it was. So Joanna says she was told to take 97 00:05:40,000 --> 00:05:43,280 Speaker 1: care of these evaluations. So he wrote his password down 98 00:05:43,279 --> 00:05:44,880 Speaker 1: on a post it note and handed it to me, 99 00:05:46,000 --> 00:05:49,280 Speaker 1: which I stuck on my monitor. So the password was 100 00:05:49,279 --> 00:05:51,920 Speaker 1: a log into everything. It was a log into email, 101 00:05:51,920 --> 00:05:53,680 Speaker 1: it was a log into docks, it was a log 102 00:05:53,760 --> 00:05:56,200 Speaker 1: into the work day, it was a log into I mean, 103 00:05:56,240 --> 00:06:00,719 Speaker 1: it was a log into absolutely everything. Joanna used this 104 00:06:00,720 --> 00:06:03,200 Speaker 1: password often over the next few months to get stuff 105 00:06:03,240 --> 00:06:06,479 Speaker 1: done for her boss and for her coworkers. It wasn't 106 00:06:06,520 --> 00:06:09,080 Speaker 1: the most above board way of doing business or the 107 00:06:09,120 --> 00:06:12,599 Speaker 1: most secure. And one day Joanna said she was checking 108 00:06:12,640 --> 00:06:15,760 Speaker 1: email and she mixed up whose account she was logged into. 109 00:06:16,000 --> 00:06:17,440 Speaker 1: I was in his system. Forgetting that I was in 110 00:06:17,520 --> 00:06:20,039 Speaker 1: his system, I was, and I thought it was in mind. 111 00:06:20,200 --> 00:06:25,039 Speaker 1: And the first thing I saw is an email that 112 00:06:25,120 --> 00:06:29,480 Speaker 1: I had sent to my manager asking to be considered 113 00:06:29,560 --> 00:06:33,920 Speaker 1: for a different position. And I saw the first part 114 00:06:33,960 --> 00:06:35,920 Speaker 1: of his responses, which was something like that would be 115 00:06:35,920 --> 00:06:41,200 Speaker 1: a fucking disaster. But then I noticed in the response 116 00:06:41,320 --> 00:06:45,120 Speaker 1: was something like, but you know, we're not gonna she's 117 00:06:45,160 --> 00:06:48,080 Speaker 1: not gonna be around much longer anyway. So when Joanna 118 00:06:48,160 --> 00:06:51,159 Speaker 1: was logged into this executive's email, she found out she 119 00:06:51,240 --> 00:06:54,200 Speaker 1: was going to lose her job. Obviously, she was hurt, 120 00:06:54,680 --> 00:06:58,799 Speaker 1: and she kept scrolling. So then frankly, I just looked, 121 00:06:59,400 --> 00:07:02,720 Speaker 1: because I had his log in, i'd you know, I 122 00:07:02,760 --> 00:07:06,320 Speaker 1: was in his email now, And that was when I 123 00:07:06,400 --> 00:07:10,760 Speaker 1: discovered that there was a call for a seven percent 124 00:07:12,320 --> 00:07:16,800 Speaker 1: headcount reduction. That's a big freaking reduction. Joanna read in 125 00:07:16,880 --> 00:07:19,560 Speaker 1: this executive's email that not only was she going to 126 00:07:19,600 --> 00:07:22,160 Speaker 1: lose her job, but a lot of her coworkers were 127 00:07:22,160 --> 00:07:25,360 Speaker 1: going to get cut as well, and this raised a 128 00:07:25,440 --> 00:07:29,239 Speaker 1: red flag for Joanna. She was already feeling resentful about 129 00:07:29,240 --> 00:07:32,000 Speaker 1: how we were spent money. She saw we work buying 130 00:07:32,000 --> 00:07:35,680 Speaker 1: expensive furniture that it didn't always use and flying employees 131 00:07:35,720 --> 00:07:38,640 Speaker 1: around the world. She felt like the company was careless 132 00:07:38,680 --> 00:07:42,600 Speaker 1: with cash, and now, in her eyes, her coworkers who 133 00:07:42,600 --> 00:07:44,400 Speaker 1: were about to be laid off and didn't know it, 134 00:07:44,720 --> 00:07:48,520 Speaker 1: we're bearing the brunt of we works freewheeling spending. You 135 00:07:48,640 --> 00:07:51,679 Speaker 1: realize you've been burning money, you've been throwing money away, 136 00:07:51,680 --> 00:07:54,720 Speaker 1: You've been managing it really poorly. Then she started to 137 00:07:54,720 --> 00:07:58,120 Speaker 1: see the job cuts actually happen. She asked her manager 138 00:07:58,240 --> 00:08:00,320 Speaker 1: if they were planning to say anything about out it, 139 00:08:00,880 --> 00:08:03,200 Speaker 1: and then people were disappearing. They did in phases, and 140 00:08:03,200 --> 00:08:06,200 Speaker 1: then people were disappearing, and I said, hey, you guys 141 00:08:06,200 --> 00:08:07,800 Speaker 1: are going to announce this right like that's a fairly 142 00:08:07,800 --> 00:08:10,360 Speaker 1: significant headcount. You can't just not announce it. And he goes, 143 00:08:11,080 --> 00:08:12,840 Speaker 1: I mean there was no plans to, And I said, well, 144 00:08:12,880 --> 00:08:15,880 Speaker 1: maybe you should plan to, because you're creating a lot 145 00:08:15,920 --> 00:08:18,200 Speaker 1: of fear and a lot of anks. So people were 146 00:08:18,200 --> 00:08:21,560 Speaker 1: just being fired from teams escorted out the building and 147 00:08:21,640 --> 00:08:24,760 Speaker 1: nobody knew what was happening, and people were looking for coworkers. 148 00:08:25,680 --> 00:08:28,679 Speaker 1: In Joanna's mind, we Work was also being careless about 149 00:08:28,680 --> 00:08:31,560 Speaker 1: how they dismissed their employees. There was one incident with 150 00:08:31,600 --> 00:08:34,960 Speaker 1: one of her colleagues that really infuriated her. One of 151 00:08:34,960 --> 00:08:37,520 Speaker 1: the women on our team was getting let go, but 152 00:08:37,640 --> 00:08:42,400 Speaker 1: she got invited to a meeting by the woman who 153 00:08:42,440 --> 00:08:48,600 Speaker 1: was doing the terminations and the room had been renamed 154 00:08:49,080 --> 00:08:52,680 Speaker 1: something like termination conference room. Yeah, that was real. It 155 00:08:52,720 --> 00:08:56,680 Speaker 1: was termination conference room. Termination conference room is a pretty 156 00:08:56,720 --> 00:08:59,880 Speaker 1: careless thing to put on a calendar invitation, and Joanna 157 00:08:59,920 --> 00:09:02,199 Speaker 1: is someone who takes that kind of slip up personally, 158 00:09:02,720 --> 00:09:05,520 Speaker 1: Joanna said. When her coworkers saw the invite, she called 159 00:09:05,600 --> 00:09:09,679 Speaker 1: Joanna in a panic, and then Joanna got protective. I 160 00:09:09,760 --> 00:09:13,720 Speaker 1: call my supervisor and am livid and I'm like, this 161 00:09:13,800 --> 00:09:19,439 Speaker 1: is this is so egregious. How careless do you have 162 00:09:19,600 --> 00:09:23,040 Speaker 1: to be to do that? And if you're that careless, 163 00:09:23,320 --> 00:09:25,640 Speaker 1: then how much do you really care about your employees? 164 00:09:26,640 --> 00:09:29,400 Speaker 1: Like having a place for people to do yoga once 165 00:09:29,400 --> 00:09:33,640 Speaker 1: a day does not count. She felt especially infuriated that 166 00:09:33,679 --> 00:09:36,400 Speaker 1: we Work had said one thing and was doing another 167 00:09:37,040 --> 00:09:39,920 Speaker 1: given how the company presented itself, we should tell people 168 00:09:39,960 --> 00:09:42,199 Speaker 1: the truth because we say we're a different kind of company. 169 00:09:42,360 --> 00:09:44,400 Speaker 1: We talk about I mean, in our mission same we 170 00:09:44,440 --> 00:09:48,040 Speaker 1: talk about authenticity, right, are we going to be authentic? 171 00:09:48,440 --> 00:09:51,120 Speaker 1: Part of that is truth telling. So the answer was no, 172 00:09:51,160 --> 00:09:53,679 Speaker 1: we're not gonna be authentic, and that's one Frankly, I 173 00:09:53,760 --> 00:09:57,360 Speaker 1: just went digging. So remember, she's already looked in this 174 00:09:57,440 --> 00:10:01,560 Speaker 1: executive's email, but this is going further. Digging meant using 175 00:10:01,559 --> 00:10:05,440 Speaker 1: that executive's access to look for more information. I have 176 00:10:05,559 --> 00:10:08,120 Speaker 1: to imagine this was not what the executive had in 177 00:10:08,200 --> 00:10:10,760 Speaker 1: mind when he wrote that password on the post it note. 178 00:10:11,240 --> 00:10:16,439 Speaker 1: But again, I had been given somebody's access to everything 179 00:10:16,480 --> 00:10:20,760 Speaker 1: that they had, So I'd like to point out that 180 00:10:20,760 --> 00:10:24,480 Speaker 1: that's not actually a criminal offense. I looked through a 181 00:10:24,480 --> 00:10:27,440 Speaker 1: bunch of documents and downloaded a bunch of documents because 182 00:10:27,720 --> 00:10:31,200 Speaker 1: I just I knew that there was something horribly fishy 183 00:10:31,240 --> 00:10:33,640 Speaker 1: going on, and I knew that something was going wrong. 184 00:10:34,240 --> 00:10:37,880 Speaker 1: Joanna found some intriguing stuff. She found documents that said 185 00:10:37,920 --> 00:10:40,640 Speaker 1: we Work was cutting way back on its profit projections 186 00:10:41,840 --> 00:10:45,559 Speaker 1: by almost That meant that we Work had been way 187 00:10:45,600 --> 00:10:48,960 Speaker 1: too optimistic about its future and now had to face reality. 188 00:10:49,679 --> 00:10:52,200 Speaker 1: Joanna thought it was wrong that we Work wasn't telling 189 00:10:52,200 --> 00:10:55,600 Speaker 1: its employees that its projections had been too rosy. They 190 00:10:55,600 --> 00:10:58,720 Speaker 1: were having to constantly revise internal figures down because they 191 00:10:58,720 --> 00:11:00,680 Speaker 1: weren't making as much money as they said they were, 192 00:11:01,400 --> 00:11:04,120 Speaker 1: and employees did not know that. And bear in mind, 193 00:11:04,559 --> 00:11:08,960 Speaker 1: employees technically are shareholders in the organization because they're all 194 00:11:09,000 --> 00:11:12,720 Speaker 1: given equity. Let me make a quick as sign here. Yes, 195 00:11:12,800 --> 00:11:15,400 Speaker 1: the employees are shareholders since they were given stock when 196 00:11:15,440 --> 00:11:18,559 Speaker 1: they joined we Work. Generally, if you're a shareholder in 197 00:11:18,600 --> 00:11:22,440 Speaker 1: a private company, you can get some information about its finances, 198 00:11:22,480 --> 00:11:24,880 Speaker 1: more than is available to the public, but it's not 199 00:11:24,920 --> 00:11:28,320 Speaker 1: a requirement that the company share it with you. All 200 00:11:28,360 --> 00:11:31,920 Speaker 1: of this, the secrecy around the job cuts, the wasteful spending, 201 00:11:32,160 --> 00:11:36,000 Speaker 1: the wildly optimistic profit numbers. This brought Johanna to a 202 00:11:36,040 --> 00:11:39,400 Speaker 1: breaking point, and she felt she needed to make this public. 203 00:11:39,920 --> 00:11:46,160 Speaker 1: And I thought, fuck this, I'm telling somebody, and I'm 204 00:11:46,160 --> 00:11:51,960 Speaker 1: telling somebody because after everything I've seen, after all the 205 00:11:51,960 --> 00:11:54,240 Speaker 1: ways in which I've seen people break their backs to 206 00:11:54,320 --> 00:11:57,320 Speaker 1: be here, and so I thought, what's the worst that 207 00:11:57,320 --> 00:12:00,000 Speaker 1: can happen? And obviously, the worst that can happen is 208 00:12:00,000 --> 00:12:01,760 Speaker 1: it can get far fucking worse than you ever magic 209 00:12:01,760 --> 00:12:04,160 Speaker 1: that can happen. But anyway, I say, what's the worst 210 00:12:04,160 --> 00:12:09,640 Speaker 1: that can happen? And so I screenshot it, and I 211 00:12:09,679 --> 00:12:13,880 Speaker 1: talked to a reporter, and that reporter was me, So 212 00:12:13,960 --> 00:12:17,920 Speaker 1: now I have to pause again. Joanna shared internal recordings 213 00:12:17,920 --> 00:12:21,520 Speaker 1: and documents with me in the summer. Of those tapes 214 00:12:21,520 --> 00:12:24,400 Speaker 1: of we Works internal meetings that you hear throughout the series, 215 00:12:24,800 --> 00:12:28,439 Speaker 1: those were given to me by Joanna. A couple of 216 00:12:28,440 --> 00:12:31,319 Speaker 1: months after I met Joanna, I published a story about 217 00:12:31,360 --> 00:12:35,160 Speaker 1: we Work slashing its profit forecast by almost eight He 218 00:12:35,240 --> 00:12:37,120 Speaker 1: was one of the earliest stories to say that WE 219 00:12:37,120 --> 00:12:39,839 Speaker 1: Work sometimes projected that it would make tons and tons 220 00:12:39,840 --> 00:12:42,640 Speaker 1: of money, but that the reality was a lot more dismal. 221 00:12:43,160 --> 00:12:45,480 Speaker 1: The story was widely read and picked up by several 222 00:12:45,520 --> 00:12:49,840 Speaker 1: other outlets, and normally, because Joanna was a confidential source, 223 00:12:50,080 --> 00:12:52,560 Speaker 1: I would never be naming her on my own. But 224 00:12:52,720 --> 00:12:55,640 Speaker 1: some time has passed and Joanna said she wanted to 225 00:12:55,679 --> 00:12:59,160 Speaker 1: share her whole story, identity and all. She felt that 226 00:12:59,240 --> 00:13:01,800 Speaker 1: what she saw at WE Work and how they responded 227 00:13:01,840 --> 00:13:04,199 Speaker 1: to what she did, tells a lot about what kind 228 00:13:04,200 --> 00:13:08,280 Speaker 1: of company they are. Here's the thing. Joanna is kind 229 00:13:08,320 --> 00:13:11,800 Speaker 1: of a polarizing figure. Many people think that what she did, 230 00:13:12,400 --> 00:13:15,920 Speaker 1: accessing internal information and sharing it with a reporter is 231 00:13:16,000 --> 00:13:19,200 Speaker 1: really wrong and hurtful to a company. Others might see 232 00:13:19,200 --> 00:13:21,360 Speaker 1: her as a whistleblower who wanted to get the truth 233 00:13:21,400 --> 00:13:25,920 Speaker 1: out about WE Work. I told people in two sixteen 234 00:13:26,840 --> 00:13:31,360 Speaker 1: they were doing funny things with their numbers. I told 235 00:13:31,400 --> 00:13:35,400 Speaker 1: people that, but I thought people would hold them accountable 236 00:13:35,440 --> 00:13:37,840 Speaker 1: because they were big, that a lot of money invested. 237 00:13:38,280 --> 00:13:40,560 Speaker 1: But it's not clear that people were ready to listen. 238 00:13:41,240 --> 00:13:43,360 Speaker 1: And regardless of whether you think what she did was 239 00:13:43,440 --> 00:13:46,280 Speaker 1: right or wrong, the things that happened to her next 240 00:13:46,760 --> 00:13:49,800 Speaker 1: no reporter wants to see happen to a source WE 241 00:13:49,920 --> 00:13:53,080 Speaker 1: Work came after her. Joanna is the first to admit 242 00:13:53,120 --> 00:13:56,120 Speaker 1: that when she was downloading those internal documents, she wasn't 243 00:13:56,120 --> 00:13:59,920 Speaker 1: the most careful about hiding her digital footprints. I all 244 00:14:00,040 --> 00:14:03,520 Speaker 1: most never remembered to try to use a VPN to 245 00:14:03,640 --> 00:14:07,600 Speaker 1: mask where I was. I don't think and ladies and gentlemen, 246 00:14:07,600 --> 00:14:09,760 Speaker 1: if you ever decide you need to leak documents, I 247 00:14:09,800 --> 00:14:13,400 Speaker 1: did not think about what the consequences would look like 248 00:14:13,480 --> 00:14:16,480 Speaker 1: for me. We Work was able to trace the leak 249 00:14:16,559 --> 00:14:19,600 Speaker 1: back to Joanna. Based on these clues, they knew she 250 00:14:19,680 --> 00:14:22,160 Speaker 1: had the executive's password, and when they looked at the 251 00:14:22,200 --> 00:14:25,240 Speaker 1: IP address that downloaded a lot of material, they could 252 00:14:25,240 --> 00:14:28,480 Speaker 1: see that it was in her neighborhood within New York City. 253 00:14:29,000 --> 00:14:32,920 Speaker 1: Joanna thought that speaking up would lead to more immediate consequences. 254 00:14:33,240 --> 00:14:36,280 Speaker 1: It did have an effect, a big one, but not 255 00:14:36,400 --> 00:14:39,720 Speaker 1: for we Work, for her. It didn't occur to me 256 00:14:39,760 --> 00:14:41,920 Speaker 1: that everybody would brush it under the rug and then 257 00:14:42,080 --> 00:14:45,680 Speaker 1: put my face everywhere and call me a criminal and 258 00:14:45,760 --> 00:14:47,760 Speaker 1: a thief and a horrible person and someone who was 259 00:14:47,800 --> 00:14:51,400 Speaker 1: out for for revenge. When my story came out, We 260 00:14:51,440 --> 00:14:55,160 Speaker 1: Work sued Joanna the very same day. In the lawsuit, 261 00:14:55,480 --> 00:14:58,440 Speaker 1: we Work alleged that Joanna stole the documents. They called 262 00:14:58,440 --> 00:15:04,200 Speaker 1: it corporate theft. Being sued was terrifying. I cried a lot. 263 00:15:05,520 --> 00:15:08,640 Speaker 1: I didn't sleep well. I felt like my world was collapsing. 264 00:15:09,200 --> 00:15:11,480 Speaker 1: The lawsuit felt like such a punch to the chest, 265 00:15:12,560 --> 00:15:15,680 Speaker 1: and the lawsuit was just the beginning. Joanna spent the 266 00:15:15,720 --> 00:15:18,480 Speaker 1: next few years dealing with the fallout while the case 267 00:15:18,480 --> 00:15:21,360 Speaker 1: went on. Because other news outlets picked up the story, 268 00:15:22,000 --> 00:15:25,000 Speaker 1: so the first thing was is you couldn't google my name. 269 00:15:25,680 --> 00:15:28,440 Speaker 1: I was unemployed and I was looking for employment, and 270 00:15:28,480 --> 00:15:30,880 Speaker 1: you can't look for employment when if you google your name, 271 00:15:30,960 --> 00:15:33,160 Speaker 1: the first thing that pops up is that Real Deal 272 00:15:33,280 --> 00:15:37,560 Speaker 1: article with your face on it. So it was hard 273 00:15:37,600 --> 00:15:41,000 Speaker 1: for me to get a job. Just to clarify, the 274 00:15:41,080 --> 00:15:43,880 Speaker 1: Real Deal is a real estate news site which published 275 00:15:43,880 --> 00:15:46,960 Speaker 1: a story with the headline we worked. Sues ex employee 276 00:15:46,960 --> 00:15:52,240 Speaker 1: for allegedly leaking financial docs to Bloomberg. So yikes, And 277 00:15:52,280 --> 00:15:57,920 Speaker 1: then she says the FBI got involved. On Monday, January seventeen, 278 00:15:57,960 --> 00:15:59,640 Speaker 1: the FBI showed up at my door at eight p m. 279 00:15:59,760 --> 00:16:01,560 Speaker 1: And I talked to them until and I talked to 280 00:16:01,600 --> 00:16:06,240 Speaker 1: them until midnight. And my civil lawyer shit a brick 281 00:16:06,600 --> 00:16:08,440 Speaker 1: when I told him that I talked to them, but 282 00:16:08,520 --> 00:16:11,480 Speaker 1: I didn't have anything to hide. This was about six 283 00:16:11,560 --> 00:16:14,600 Speaker 1: months after she was sued. They looked exactly like they 284 00:16:14,640 --> 00:16:17,400 Speaker 1: came straight out of Central Casting, Like if you call 285 00:16:17,640 --> 00:16:19,320 Speaker 1: the Hollywood and you were like, we need two guys 286 00:16:19,320 --> 00:16:22,760 Speaker 1: who look like FBI agents. They showed right up. I 287 00:16:22,800 --> 00:16:24,120 Speaker 1: was in the middle of washing my face and my 288 00:16:24,160 --> 00:16:25,400 Speaker 1: husband was like, the Feds are at the door, and 289 00:16:25,400 --> 00:16:27,440 Speaker 1: I was like, ha, He's like no, seriously, the Feds 290 00:16:27,440 --> 00:16:30,720 Speaker 1: are at the door, and I was like what Joanna said? 291 00:16:30,760 --> 00:16:32,720 Speaker 1: They were pretty polite and asked her a lot of 292 00:16:32,800 --> 00:16:35,880 Speaker 1: questions about WE Work, she said. They asked her over 293 00:16:35,920 --> 00:16:39,400 Speaker 1: and over again how she got the password, and then 294 00:16:39,680 --> 00:16:42,960 Speaker 1: nothing came of it. In my experience reporting on these 295 00:16:42,960 --> 00:16:45,160 Speaker 1: sorts of cases, that's kind of how it goes with 296 00:16:45,280 --> 00:16:49,120 Speaker 1: FBI inquiries. They visit people's houses, they asked questions, and 297 00:16:49,160 --> 00:16:51,720 Speaker 1: they never say exactly what for, and in the end 298 00:16:51,840 --> 00:16:54,760 Speaker 1: the case might be filed or it might just disappear 299 00:16:55,680 --> 00:16:58,000 Speaker 1: by the way. The FBI declined to comment on this. 300 00:16:59,320 --> 00:17:02,520 Speaker 1: As for joanna civil case, it ended in an unexpected 301 00:17:02,560 --> 00:17:05,920 Speaker 1: and quiet way as well. Joanna knew that WE Work 302 00:17:05,960 --> 00:17:08,600 Speaker 1: had the resources to draw out a lawsuit which could 303 00:17:08,640 --> 00:17:11,080 Speaker 1: bankrupt her. When she was trying to figure out what 304 00:17:11,160 --> 00:17:13,840 Speaker 1: to do, a lawyer friend gave her a piece of advice, 305 00:17:14,440 --> 00:17:16,840 Speaker 1: just don't show up. You don't have to pay a lawyer, 306 00:17:17,040 --> 00:17:19,840 Speaker 1: and the judge will probably award WE Work a default judgment, 307 00:17:20,160 --> 00:17:22,280 Speaker 1: which is kind of a standard amount of money she 308 00:17:22,359 --> 00:17:24,960 Speaker 1: might owe the company based on some details of the case. 309 00:17:25,680 --> 00:17:28,520 Speaker 1: And that was exactly what happened. But they in their 310 00:17:28,600 --> 00:17:32,919 Speaker 1: lawsuit were demanding like untold sums of money and what 311 00:17:32,960 --> 00:17:38,440 Speaker 1: they got was like with the default judgment, Joanna only 312 00:17:38,480 --> 00:17:40,720 Speaker 1: had to pay back her severance, which was just one 313 00:17:40,720 --> 00:17:43,720 Speaker 1: paycheck and some fees. It added up to a little 314 00:17:43,720 --> 00:17:47,480 Speaker 1: over three thousand dollars, and oddly enough, We Work never 315 00:17:47,520 --> 00:17:50,400 Speaker 1: collected the money and the window to do so closed 316 00:17:50,400 --> 00:17:54,760 Speaker 1: in so Joanna paid them nothing and when the case 317 00:17:54,840 --> 00:17:58,640 Speaker 1: was finally finished, she was hugely relieved. And I remember 318 00:17:58,680 --> 00:18:00,679 Speaker 1: looking at it online and I'm We're looking at my 319 00:18:00,760 --> 00:18:02,360 Speaker 1: husband and going, that has got to be the most 320 00:18:02,359 --> 00:18:06,160 Speaker 1: anti climactic thing that's ever happened in my life when 321 00:18:06,240 --> 00:18:08,080 Speaker 1: it started out as something that seemed like it was 322 00:18:08,119 --> 00:18:12,600 Speaker 1: going to destroy my life. So that's the story of Joanna, 323 00:18:12,680 --> 00:18:16,359 Speaker 1: the employee who in wanted to tell the world that 324 00:18:16,400 --> 00:18:19,640 Speaker 1: we Work was struggling to hit its financial goals. What's 325 00:18:19,680 --> 00:18:22,399 Speaker 1: interesting is that when my story came out, we were 326 00:18:22,520 --> 00:18:25,560 Speaker 1: confirmed that the documents Joanna shared were real, but at 327 00:18:25,600 --> 00:18:28,080 Speaker 1: the same time they dismissed what was in the documents. 328 00:18:28,480 --> 00:18:32,400 Speaker 1: A spokesperson told reporters, our business is performing incredibly well 329 00:18:32,400 --> 00:18:35,440 Speaker 1: and is stronger than ever. The stolen document was prepared 330 00:18:35,480 --> 00:18:40,080 Speaker 1: months ago and does not reflect our robust operating momentum. 331 00:18:40,160 --> 00:18:43,000 Speaker 1: By speaking out, Joanna wanted to tell the world that 332 00:18:43,040 --> 00:18:45,439 Speaker 1: We Work was falling short of its own projections and 333 00:18:45,480 --> 00:18:48,280 Speaker 1: was aware of it. The information that she put out 334 00:18:48,280 --> 00:18:51,639 Speaker 1: there was a peek into we work shaky finances years 335 00:18:51,720 --> 00:18:53,959 Speaker 1: before the rest of the world understood the full extent. 336 00:18:55,280 --> 00:18:57,879 Speaker 1: Joanna thought that her actions would make a difference in 337 00:18:57,920 --> 00:19:01,479 Speaker 1: how people saw the company, but they actually didn't, at 338 00:19:01,560 --> 00:19:04,960 Speaker 1: least not right away. In hindsight, We Work shouldn't have 339 00:19:05,000 --> 00:19:07,640 Speaker 1: been too worried. As far as I can tell, those 340 00:19:07,680 --> 00:19:10,639 Speaker 1: stories about making less money than they expected didn't slow 341 00:19:10,680 --> 00:19:14,199 Speaker 1: the company down. We Work continued to shoot upward with 342 00:19:14,280 --> 00:19:27,800 Speaker 1: this almost unstoppable momentum. We'll be right back. The majority 343 00:19:27,840 --> 00:19:30,080 Speaker 1: of we Work employees I've interviewed didn't come to the 344 00:19:30,080 --> 00:19:33,240 Speaker 1: company skeptical. Many of them joined We Work thrilled about 345 00:19:33,240 --> 00:19:35,359 Speaker 1: the new opportunity in front of them. And I was 346 00:19:35,359 --> 00:19:38,159 Speaker 1: really excited. I mean, everything I had seen in the 347 00:19:38,160 --> 00:19:41,880 Speaker 1: news was like hot and flashy and very exciting, and 348 00:19:41,960 --> 00:19:45,120 Speaker 1: everyone I met at the offices was really cool, um, 349 00:19:45,160 --> 00:19:47,479 Speaker 1: really good people. So I had just like a very 350 00:19:47,520 --> 00:19:49,480 Speaker 1: excited feeling I was in the right place at the 351 00:19:49,560 --> 00:19:51,000 Speaker 1: right time, and I think a lot of us felt 352 00:19:51,000 --> 00:19:54,199 Speaker 1: that way. That's Tara Zoomer. She was thirty years old 353 00:19:54,240 --> 00:19:56,479 Speaker 1: when she started at we Work. She was hired as 354 00:19:56,480 --> 00:19:59,840 Speaker 1: an associate community manager. Her last job was working at 355 00:19:59,840 --> 00:20:03,159 Speaker 1: an insurance company. Compared to that, we Work seemed like 356 00:20:03,160 --> 00:20:08,119 Speaker 1: a thrilling opportunity. Tara also joined we Work in around 357 00:20:08,160 --> 00:20:10,880 Speaker 1: the same time as Joanna. Her job was to help 358 00:20:10,960 --> 00:20:14,119 Speaker 1: run a we work office building in Berkeley, California, and 359 00:20:14,160 --> 00:20:17,000 Speaker 1: she felt lucky to get the job. She had heard 360 00:20:17,040 --> 00:20:21,159 Speaker 1: story after story about early tech startup employees would become millionaires. 361 00:20:21,720 --> 00:20:24,160 Speaker 1: When Tara joined we Work, it was only five years old. 362 00:20:24,520 --> 00:20:26,879 Speaker 1: It was valued at five billion dollars at the time, 363 00:20:27,160 --> 00:20:29,479 Speaker 1: and within just a few more months she watched as 364 00:20:29,480 --> 00:20:32,679 Speaker 1: its valuation doubled to ten. It wasn't hard to imagine 365 00:20:32,720 --> 00:20:35,080 Speaker 1: that this company was going to keep skyrocketing and carry 366 00:20:35,080 --> 00:20:38,119 Speaker 1: her with it. It's like the Willy Wonka's Golden ticket. 367 00:20:38,520 --> 00:20:43,080 Speaker 1: You know, you feel like you're you won already, and 368 00:20:43,200 --> 00:20:45,000 Speaker 1: at some day you would be able to cash out 369 00:20:45,000 --> 00:20:47,720 Speaker 1: and retire. You could pay off your student loans, you 370 00:20:47,800 --> 00:20:51,080 Speaker 1: could buy a house, maybe you could relocate, you could 371 00:20:51,080 --> 00:20:54,520 Speaker 1: go on more vacations. People were just excited, like really 372 00:20:55,040 --> 00:20:57,240 Speaker 1: felt like they were going to dedicate as many years 373 00:20:57,240 --> 00:20:59,920 Speaker 1: as it was going to take to see this through, 374 00:21:00,200 --> 00:21:03,520 Speaker 1: to see what the possibilities were. Tara didn't know very 375 00:21:03,600 --> 00:21:06,119 Speaker 1: much about equity, but she had heard stories of how 376 00:21:06,160 --> 00:21:09,480 Speaker 1: it could transform people's lives. I mean, you hear the 377 00:21:09,480 --> 00:21:11,919 Speaker 1: stories of people who missed out on like early Google, 378 00:21:11,960 --> 00:21:16,159 Speaker 1: early Facebook. They're like tragic tales. So in our culture too, 379 00:21:16,160 --> 00:21:18,679 Speaker 1: we already have those those stories and narratives, and it 380 00:21:18,720 --> 00:21:21,040 Speaker 1: was a really easy thing for people to feel like 381 00:21:21,080 --> 00:21:24,720 Speaker 1: they were in that place. Everything was pointing to you're 382 00:21:24,760 --> 00:21:27,320 Speaker 1: in the right place at the right time. She started 383 00:21:27,359 --> 00:21:30,720 Speaker 1: work and immediately her new job was hecnic. I could 384 00:21:30,760 --> 00:21:34,439 Speaker 1: be doing something from like helping someone with the printer jam, 385 00:21:34,800 --> 00:21:37,760 Speaker 1: I'm taking someone on a tour for sales. Then I'm 386 00:21:37,760 --> 00:21:40,119 Speaker 1: setting up for an event, I'm shutting down an event, 387 00:21:40,800 --> 00:21:43,640 Speaker 1: um someone's birthday. We're ordering them special stuff, like really 388 00:21:43,680 --> 00:21:47,680 Speaker 1: anything that a building might need is what we would 389 00:21:47,760 --> 00:21:52,640 Speaker 1: run around all day doing. Tara was an associate community manager. 390 00:21:53,280 --> 00:21:55,560 Speaker 1: That's the title we work chose to describe the people 391 00:21:55,600 --> 00:21:59,080 Speaker 1: who do everything to keep buildings running with clean conference rooms, 392 00:21:59,160 --> 00:22:03,680 Speaker 1: fresh coffee and working internet. These positions had long hours. 393 00:22:04,080 --> 00:22:07,679 Speaker 1: Tara was working evenings and she wasn't being paid overtime. 394 00:22:08,400 --> 00:22:11,520 Speaker 1: Tara said that's because she was categorized as a manager, 395 00:22:11,760 --> 00:22:15,320 Speaker 1: and managers are often exempt from overtime pay. But she 396 00:22:15,359 --> 00:22:19,040 Speaker 1: says she wasn't managing any employees were making major business decisions. 397 00:22:19,320 --> 00:22:20,919 Speaker 1: I was called a manager, and I don't think I 398 00:22:20,960 --> 00:22:24,720 Speaker 1: was managing very much except like day to day simple operations. 399 00:22:24,840 --> 00:22:26,720 Speaker 1: But the number of hours I was working started to 400 00:22:26,720 --> 00:22:29,439 Speaker 1: be the real concerning point um because we're required to 401 00:22:29,480 --> 00:22:32,520 Speaker 1: be at events. I'm leaving the office at nine, ten, 402 00:22:32,640 --> 00:22:35,040 Speaker 1: eleven o'clock at night and just kind of getting that 403 00:22:35,080 --> 00:22:39,320 Speaker 1: burnout pretty pretty early on. That lack of overtime pay 404 00:22:39,560 --> 00:22:42,000 Speaker 1: was wearing on her. She was having a hard time 405 00:22:42,040 --> 00:22:44,679 Speaker 1: living in the Bay Area on her salary, even with 406 00:22:44,720 --> 00:22:48,320 Speaker 1: a job. She was going broke. Yes, seventy eight hours 407 00:22:48,320 --> 00:22:50,760 Speaker 1: a week. That means you don't have time for any 408 00:22:50,760 --> 00:22:53,600 Speaker 1: other income except for the one that you have. And 409 00:22:53,680 --> 00:22:55,560 Speaker 1: for forty two thousand a year, I mean you take 410 00:22:55,600 --> 00:22:57,800 Speaker 1: a chunk out for taxes, you take a chunk out 411 00:22:57,880 --> 00:23:00,720 Speaker 1: for your insurance. For your rent in the Bay Area 412 00:23:00,800 --> 00:23:04,280 Speaker 1: is really expensive and commuting back and forth to the city. 413 00:23:04,720 --> 00:23:07,879 Speaker 1: What's left over is really not much. Um. All I 414 00:23:07,920 --> 00:23:10,440 Speaker 1: knew is that I was exhausted working, I was going 415 00:23:10,480 --> 00:23:16,239 Speaker 1: broke working, and that when I googled what like, I 416 00:23:16,280 --> 00:23:18,840 Speaker 1: was on salary, and i just was curious about overtime 417 00:23:18,880 --> 00:23:21,600 Speaker 1: because I'm like, I was calculating it out in some weeks. 418 00:23:21,640 --> 00:23:23,840 Speaker 1: I mean, I'm making if you know, if I worked 419 00:23:23,840 --> 00:23:25,920 Speaker 1: an eighty hour week at forty two thou a year, 420 00:23:25,960 --> 00:23:27,919 Speaker 1: that's like it's like twelve bucks an hour. Like it 421 00:23:28,000 --> 00:23:32,080 Speaker 1: really was starting to feel I feel really crazy. You 422 00:23:32,160 --> 00:23:34,880 Speaker 1: might be wondering what about Tara's equity and we Work, 423 00:23:35,280 --> 00:23:38,920 Speaker 1: what happened to that Willy Wonka's Golden ticket. Well, there 424 00:23:38,920 --> 00:23:41,680 Speaker 1: are many degrees of separation between the equity that Tara 425 00:23:41,800 --> 00:23:45,159 Speaker 1: got an actual money when she joined We Work. She 426 00:23:45,280 --> 00:23:48,800 Speaker 1: wasn't given any equity outright. Instead, she was given something 427 00:23:48,840 --> 00:23:52,439 Speaker 1: called stock options. Basically, this means that she had the 428 00:23:52,520 --> 00:23:55,480 Speaker 1: chance to buy some shares in the future, but only 429 00:23:55,520 --> 00:23:57,400 Speaker 1: if she stayed at We Work for at least a year, 430 00:23:58,000 --> 00:24:00,399 Speaker 1: and even then she'd have to buy these share with 431 00:24:00,440 --> 00:24:04,000 Speaker 1: her own money. This is pretty standard in the tech industry. 432 00:24:04,280 --> 00:24:06,520 Speaker 1: So even though there's that glimmer of hope that this 433 00:24:06,560 --> 00:24:09,679 Speaker 1: equity could be worth a lot someday. It's definitely not 434 00:24:09,800 --> 00:24:16,200 Speaker 1: cash in the bank. It's more of a dream. After 435 00:24:16,320 --> 00:24:18,520 Speaker 1: just a few months on the job, Tara was starting 436 00:24:18,560 --> 00:24:21,880 Speaker 1: to think that she wasn't a manager, and neither were 437 00:24:21,920 --> 00:24:24,560 Speaker 1: the other community managers and WE work buildings all over 438 00:24:24,600 --> 00:24:28,080 Speaker 1: the world that could be hundreds of employees, and she 439 00:24:28,240 --> 00:24:33,439 Speaker 1: questioned whether they were all owed overtime paying. I was 440 00:24:34,040 --> 00:24:38,960 Speaker 1: questioning our classification as salary exempt workers and finding legal counsel. 441 00:24:39,520 --> 00:24:43,280 Speaker 1: And my hope actually was that UM, I wouldn't just 442 00:24:43,320 --> 00:24:45,200 Speaker 1: be able to help myself, but that I would actually 443 00:24:45,200 --> 00:24:49,680 Speaker 1: be able to help all community managers everywhere. Around that time, 444 00:24:51,080 --> 00:24:54,080 Speaker 1: community workers made up more than half of WE Works employees. 445 00:24:54,880 --> 00:24:57,320 Speaker 1: A lot of Silicon Valley companies choose titles that are 446 00:24:57,400 --> 00:25:01,480 Speaker 1: vague or new fangled, like calling human resource people operations, 447 00:25:02,080 --> 00:25:04,760 Speaker 1: but in Tara's case, the fact that we Work said 448 00:25:04,800 --> 00:25:07,520 Speaker 1: she was a manager was stopping her from getting paid 449 00:25:07,600 --> 00:25:11,040 Speaker 1: for extra work. She started talking to her coworkers about 450 00:25:11,040 --> 00:25:15,359 Speaker 1: what she was looking into UM and shortly after that, 451 00:25:15,960 --> 00:25:19,600 Speaker 1: I had a manager confront me in a meeting, and 452 00:25:19,760 --> 00:25:22,920 Speaker 1: in that meeting she told me I should stop talking 453 00:25:22,920 --> 00:25:25,440 Speaker 1: to people about their rights because their path is their path, 454 00:25:25,560 --> 00:25:28,720 Speaker 1: and I should let everyone discover it on their own. Um. 455 00:25:28,760 --> 00:25:30,760 Speaker 1: And she told me that my talks were negative to 456 00:25:30,800 --> 00:25:33,800 Speaker 1: the work environment, like me bringing up these labor issues 457 00:25:33,880 --> 00:25:36,320 Speaker 1: is really negative to the work environment. Um. And then 458 00:25:36,320 --> 00:25:39,359 Speaker 1: she asked if I wanted to resign yeah, which I 459 00:25:39,400 --> 00:25:44,160 Speaker 1: said no. She was told that just asking these questions 460 00:25:44,440 --> 00:25:47,840 Speaker 1: was really negative to the work environment. It just strikes 461 00:25:47,840 --> 00:25:50,280 Speaker 1: me as something pretty hostile to say to someone who's 462 00:25:50,320 --> 00:25:53,639 Speaker 1: asking about their rights. It makes it sound bad and shameful. 463 00:25:54,520 --> 00:25:58,399 Speaker 1: And soon after that, Tara was fired. It was because 464 00:25:58,400 --> 00:26:01,280 Speaker 1: she didn't want to sign a new employee agreement that 465 00:26:01,320 --> 00:26:04,600 Speaker 1: we Work introduced in all their offices. She was put 466 00:26:04,640 --> 00:26:07,520 Speaker 1: off by a clause that she noticed, saying that any 467 00:26:07,600 --> 00:26:10,280 Speaker 1: claim she wanted to bring against the company would have 468 00:26:10,320 --> 00:26:14,120 Speaker 1: to go through a private dispute process called arbitration instead 469 00:26:14,119 --> 00:26:17,160 Speaker 1: of going through the court system. I refused to sign 470 00:26:17,240 --> 00:26:20,920 Speaker 1: this document, and then I was terminated. And how did 471 00:26:20,920 --> 00:26:26,000 Speaker 1: you feel? Just shocked. I didn't know that a company 472 00:26:26,040 --> 00:26:28,960 Speaker 1: had the ability to make me choose between my job 473 00:26:29,080 --> 00:26:31,879 Speaker 1: or my rights. In the midst of all of this, 474 00:26:32,320 --> 00:26:35,320 Speaker 1: she sent an email to hundreds of her coworkers. The 475 00:26:35,400 --> 00:26:39,080 Speaker 1: subject line was your rights at WE Work. I asked 476 00:26:39,080 --> 00:26:42,880 Speaker 1: her to read the letters. She wrote, Highway work as 477 00:26:42,880 --> 00:26:45,439 Speaker 1: a part of a community of people I love. It 478 00:26:45,520 --> 00:26:47,840 Speaker 1: feels strange to be addressing you all at once, but 479 00:26:47,920 --> 00:26:51,840 Speaker 1: this is important here in California and across the company. 480 00:26:51,880 --> 00:26:55,720 Speaker 1: We received new employee paperwork to sign. I have refused 481 00:26:55,720 --> 00:26:58,119 Speaker 1: to sign these documents. I am in the process of 482 00:26:58,119 --> 00:27:00,760 Speaker 1: filing a wage dispute with WE Work and will not 483 00:27:00,880 --> 00:27:03,320 Speaker 1: give up my rights to a jury. If you would 484 00:27:03,320 --> 00:27:06,359 Speaker 1: like to understand more about what you were signing, review 485 00:27:06,400 --> 00:27:08,679 Speaker 1: them with a lawyer. It is important that you know 486 00:27:08,760 --> 00:27:14,160 Speaker 1: your rights best Tara. So then Tara sued WE Work 487 00:27:14,480 --> 00:27:18,440 Speaker 1: for wrongful termination and unpaid wages. It was the first 488 00:27:18,480 --> 00:27:22,080 Speaker 1: we Work employee lawsuit that I wrote about. Tara hadn't 489 00:27:22,119 --> 00:27:24,000 Speaker 1: been at WE Work for a year, so she didn't 490 00:27:24,000 --> 00:27:28,600 Speaker 1: get any equity. This was in we Work has since 491 00:27:28,640 --> 00:27:31,639 Speaker 1: made a few changes about how they pay employees. They 492 00:27:31,640 --> 00:27:34,359 Speaker 1: gave a small pay bump for community workers and offered 493 00:27:34,400 --> 00:27:38,760 Speaker 1: some employees limited overtime, but it's unclear if community managers 494 00:27:38,800 --> 00:27:41,720 Speaker 1: are included in that group, and the company has never 495 00:27:41,800 --> 00:27:46,320 Speaker 1: admitted to misclassifying Tara or her colleagues. I want to 496 00:27:46,359 --> 00:27:49,800 Speaker 1: be clear that Tara wasn't an exception. She represents this 497 00:27:49,880 --> 00:27:53,360 Speaker 1: big group of we Work employees, the community staff, who 498 00:27:53,400 --> 00:27:56,400 Speaker 1: were the ones on the front lines of this growing company. 499 00:27:56,480 --> 00:27:58,600 Speaker 1: They were putting in the labor day after day to 500 00:27:58,720 --> 00:28:02,120 Speaker 1: run we Work offices all over the world. In many cases, 501 00:28:02,160 --> 00:28:04,679 Speaker 1: the community staff were the only we Work employees that 502 00:28:04,720 --> 00:28:09,720 Speaker 1: customers ever interacted with. Despite all of this, community workers 503 00:28:09,760 --> 00:28:12,000 Speaker 1: often got the short end of the stick at we Work. 504 00:28:12,640 --> 00:28:15,480 Speaker 1: A former executive even told me that they sometimes felt 505 00:28:15,520 --> 00:28:19,119 Speaker 1: bad for the community team. The executive brought up incidents 506 00:28:19,240 --> 00:28:22,640 Speaker 1: of customers getting aggressive at the community staff and refusing 507 00:28:22,680 --> 00:28:26,000 Speaker 1: to pay their bills. The exact also said that one 508 00:28:26,040 --> 00:28:29,280 Speaker 1: community worker even found a gun in the bathroom and 509 00:28:29,320 --> 00:28:31,600 Speaker 1: have to figure out what to do with it. These 510 00:28:31,680 --> 00:28:34,959 Speaker 1: jobs were essential to the company, but also difficult and 511 00:28:35,080 --> 00:28:40,160 Speaker 1: unpredictable with low pay. Tara is also an important person 512 00:28:40,200 --> 00:28:42,440 Speaker 1: in the history of we Work. She was one of 513 00:28:42,440 --> 00:28:45,280 Speaker 1: the first people to speak out publicly against the company, 514 00:28:45,360 --> 00:28:48,080 Speaker 1: which remember was one of the most well funded startups 515 00:28:48,080 --> 00:28:51,360 Speaker 1: in Silicon Valley. I remember reading about her case just 516 00:28:51,440 --> 00:28:54,040 Speaker 1: as I was starting to cover the company it was 517 00:28:54,080 --> 00:28:57,160 Speaker 1: fascinating to me. We Work proclaimed to be about having 518 00:28:57,160 --> 00:29:00,160 Speaker 1: each other's backs and being better together, but here this 519 00:29:00,240 --> 00:29:03,880 Speaker 1: employee saying that many of its staff felt overworked, underpaid, 520 00:29:04,040 --> 00:29:08,840 Speaker 1: and exploited. These lawsuits are far from the only ones 521 00:29:08,880 --> 00:29:11,680 Speaker 1: we Work has dealt with over the years. The company 522 00:29:11,720 --> 00:29:15,720 Speaker 1: has been hit with other serious allegations. One ex employee 523 00:29:15,720 --> 00:29:18,440 Speaker 1: said that she had been groped and sexually assaulted at 524 00:29:18,440 --> 00:29:21,840 Speaker 1: we Works Big Parties, Summer Camp, and Summit by two 525 00:29:21,880 --> 00:29:26,040 Speaker 1: separate colleagues. We Worked disputed this. In fact, we were 526 00:29:26,120 --> 00:29:28,760 Speaker 1: Co founder Miguel McKelvey wrote an email to all we 527 00:29:28,880 --> 00:29:32,920 Speaker 1: Work staff, calling this employees allegations merit lists and saying 528 00:29:32,960 --> 00:29:36,480 Speaker 1: that she was a poor performer. Another ex employee claimed 529 00:29:36,520 --> 00:29:39,440 Speaker 1: that we Work systematically paid men more than women for 530 00:29:39,520 --> 00:29:44,440 Speaker 1: similar work. A third alleged racial discrimination. Still another person 531 00:29:44,520 --> 00:29:46,520 Speaker 1: said he was pushed out of his job for being 532 00:29:46,560 --> 00:29:50,320 Speaker 1: too old. All of the cases are either pending or settled. 533 00:29:50,800 --> 00:29:54,440 Speaker 1: We Work said these claims are without merit. It's worth 534 00:29:54,480 --> 00:29:57,600 Speaker 1: taking a moment to consider Tara and Joanna's stories side 535 00:29:57,640 --> 00:30:01,080 Speaker 1: by side. They both took big risk because they wanted 536 00:30:01,120 --> 00:30:04,040 Speaker 1: to change the narrative around We Work, but back in 537 00:30:05,280 --> 00:30:09,160 Speaker 1: neither could really change we Works trajectory. The company's momentum 538 00:30:09,160 --> 00:30:12,320 Speaker 1: at the time was just too strong, and as you'll 539 00:30:12,360 --> 00:30:14,880 Speaker 1: hear in the next episode, We Work didn't slow down 540 00:30:14,920 --> 00:30:18,320 Speaker 1: at all. In fact, things just got more over the top. 541 00:30:18,840 --> 00:30:21,560 Speaker 1: Adam was handed billions of dollars and told you have 542 00:30:21,600 --> 00:30:24,840 Speaker 1: to be crazier, make it ten times bigger, and he 543 00:30:24,880 --> 00:30:35,320 Speaker 1: took it to heart. That's next time on Foundering. Foundering 544 00:30:35,400 --> 00:30:38,320 Speaker 1: is hosted by me Ellen Hewitt. Sean When is our 545 00:30:38,360 --> 00:30:42,400 Speaker 1: executive producer. My Aquava is our associate producer. Ray Mondo 546 00:30:42,520 --> 00:30:45,480 Speaker 1: mixed the show today. Mark Million and Vander May and 547 00:30:45,520 --> 00:30:48,960 Speaker 1: Alistair Barr are our story editors. Francesco Levi is the 548 00:30:48,960 --> 00:30:52,080 Speaker 1: head of Bloomberg Podcasts. Be sure to subscribe and if 549 00:30:52,120 --> 00:30:55,080 Speaker 1: you like our show, leave a review. Most importantly, tell 550 00:30:55,080 --> 00:31:01,320 Speaker 1: your friends see you next time. At the bar of 551 00:31:01,520 --> 00:31:01,920 Speaker 1: the part