
Illustration: Sarah Grillo/Axios
WeGrow, an educational branch of WeWork, will be closing its doors at the end of 2019-2020 academic year so its parent company can focus on the office-sharing business, reports Reuters.
Why it matters: The company is cutting expenses by laying off employees and closing or selling business units deemed nonessential to its operations in an effort to avoid running out of money, per Reuters.
The big picture: WeWork cancelled its IPO after struggling to get it off the ground, and its is now seeking new financing. Founder Adam Neumann stepped down last month as CEO following growing investor concern over the company's value and business model.
Context: The private school for kids as young as 2 was founded by Neumann's wife Rebekah, and charged between $22,000 to $42,000 for annual tuition based on age.
Go deeper... Latest WeWork drama: SoftBank vs. CEO Adam Neumann