Toxic workplace: WeWork says carcinogen found in some offices

Toxic workplace: WeWork says carcinogen found in some offices

Toxic workplace: WeWork says carcinogen found in some offices

Their analysis included a series of test on sampling of phone booths and when they got the results last week, they started to take all the potentially impacted booths out of the service.

WeWork, the office space sharing startup, told employees Monday that they would be closing 2,300 phone booths that are or might be contaminated with formaldehyde in offices across the USA and Canada.

WeWork has faced a cash crunch in recent weeks after abandoning its initial public offering last month amid tepid interest from investors anxious about WeWork's massive losses and corporate governance problems. The company has now removed an additional 700 booths.

"The safety and well-being of our members is our top priority, and we are working to remedy this situation as quickly as possible", it adds in a statement.

The company that made waves by, among other things, hiring legendary hip-hop artist Darryl McDaniels of Run-DMC to perform at a post-layoff party, is back in the news this week for yet another unsavory reason. Xen Eldridge, a tenant of WeWork's Third Avenue location in Seattle, first sent an email to a WeWork community manager on August 29, concerned because he and his co-workers had been experiencing side effects after spending time in the office's phone booths. While We Work declined to discuss the costs of testing and removal of the offending cubicles, the added costs won't help their financial position.

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It is now in talks for a multi-billion dollar rescue deal that could lead to its largest shareholder, Japan's SoftBank Group Corp, taking control, two people familiar with the matter said. Long-term exposure to formaldehyde has been linked to certain types of cancers.

WeWork's investors want to wait for Jamie Dimon's JPMorgan Chase, however, because they think it will offer a package that will dilute the company's stock less than the SoftBank, which would reportedly value WeWork at roughly $10 billion, according to two sources familiar with the talks.

Private phone booths at the Embarcadero WeWork offices in San Francisco.

The office-sharing company is pulling thousands of phone booths out of service, it said in an email to tenants Monday morning.

After dealing with corporate drama for weeks that saw the withdrawing of its IPO and the ousting of its CEO, coworking startup WeWork is facing a new set of issues after up to 2,300 phone booths were flagged to have "potentially elevated levels of formaldehyde". Even higher levels of exposure for longer periods of time may cause some types of cancers, according to the agency.

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