- The office-sharing company is pulling thousands of phone booths out of service, it said in an email to tenants Monday morning.
- WeWork made the announcement in response to complaints about "odor and eye irritation."
- Visit Business Insider's homepage for more stories.
WeWork says thousands of its phone booths could have dangerous levels of formaldehyde after people complained about odor and eye irritation
WeWork warned tenants that it found "potentially elevated levels of formaldehyde" in phone booths throughout its locations in the US and Canada.
WeWork tenants received an email Monday morning informing them of "potentially elevated levels of formaldehyde" in phone booths throughout WeWork offices in the US and Canada.
The email, obtained by Business Insider, states that WeWork is in the process of pulling 1,600 phone booths from WeWork's locations that "may be impacted," in addition to 700 phone booths that have yet to be tested for formaldehyde.
Formaldehyde is a toxic chemical used primarily as a sealing agent in particleboard and wood products. When people are exposed to excessive levels of the chemical, they can experience eye, nose, and throat irritation, according to the EPA .
WeWork warned its tenants of the risk of formaldehyde in phone booths after some people complained of "odor and eye irritation," the email said.
In a statement to Business Insider, a WeWork spokesperson confirmed the contents of the email and said WeWork took action to remove the phone booths as soon as tests for high levels of formaldehyde came back positive late last week.
WeWork tenants were unnerved by the news, and many voiced exasperation on Twitter Monday morning.
The high levels of formaldehyde were caused by the manufacturer of the phone booths, according to the WeWork spokesperson.
This is the latest incident after a difficult few months for WeWork . The company faced crushing scrutiny after filing its initial public offering paperwork in August, which showed a questionable path to profitability. Meanwhile, then-CEO Adam Neumann came under fire for bizarre workplace antics like serving employees tequila shots after discussing layoffs and smoking weed on a company jet.
WeWork and Neumann began to lose the support of investors in the month that followed, causing the company's valuation to drop by more than 50%. WeWork delayed its IPO on September 17 and Neumann stepped down on September 24.
The company is now reportedly looking for a line of credit, and could run out of cash next month without it .
See Also:
- As founders and VC investors lock horns, startups are on the hunt for 'outside' board directors, Silicon Valley's in-demand job
- Phil Libin is refocusing his startup incubator from AI to health tech because there's no need to 'shove' artificial intelligence into everything
- WeWork is now is said to be talking to JPMorgan about a $5 billion credit line and could run out of cash next month without it
SEE ALSO: SoftBank could reportedly take control of WeWork at a valuation below $10 billion as the embattled office rental company seeks bailout options
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