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In what seems like an end to a disappointing year for troubled startup WeWork the company recently announced its intention to lay off 2,400 workers from the company following near collapse. The once-famed startup announced this on Thursday. The layoffs amount to roughly 20% of its 12,500 strong workforces. Some more layoffs of over 1,000 people are expected as several business units of the company are going to be shut down, merged or sold off as the company refocuses and resets several aspects of its business model due to the new stringent measures that have been introduced to ensure its survival.

A further 1,000 maintenance workers are also expected to be transferred to outsourcing agencies in order to lower the human resource running costs. WeWork responded in a statement and said:

“The company is making necessary layoffs to create a more efficient organization.”

From being one of the most promising startups and having one of the most promising IPOs this year, WeWork has become a pariah and no one wants to even consider an investment in the failing firm that has been saved by bare inches from collapse by Softbank.

Initially valued at $40 billion, WeWork has been valued at less than 10% of its original value. This follows extremely quick expansion, improper corporate practices by the former CEO Adam Neumann, improper valuations of the company, withdrawal of its IPO, the exit of Adam Neumann and the bailout of the company by Softbank.

The layoffs are currently occurring under the tenure of the new Chairman Marcelo Claure who is also a Senior Executive at Softbank as well. Softbank, of course, is the biggest investor in the ailing company and the largest shareholder at the same time and it has been doing everything possible to reverse the trend of losses that WeWork has been going through.

Already, there are signs that the bailout deal that Softbank cut with the management isn’t quite cutting it as no one knows how bad things are on WeWork’s balance sheet.

Already, the exit deal provided to Mr. Nuemann has already generated a lot of anger among employees who had already indicated this in a letter to the new management. Many of them already held shares in the organization and now that there won’t be an IPO the hopes of high returns on investments won’t hold sway anymore.

From next month all cleaning and facilitation jobs would be transferred to JLL which is a real estate servicing firm or one of its associate companies. WeWork had already informed its cleaning and facilities workers that anyone who wanted to retain his or her job will have to transfer to the other company and retain all salaries and benefits however those who don’t will lose their employment sources reveal. 

“These are incredibly talented professionals, and we are grateful for the important roles they have played in building WeWork over the last decade,” indicated WeWork in the statement.

Christopher Hamman , 2019-11-22 19:09:49 ,

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While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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