An executive told employees on a video call that the firm didn’t have enough money to pay severance packages or unused paid time off, a person who attended the meeting said. The executive said the effects of Covid-19, as well as rising costs of labor and construction materials, contributed to its latest cash crunch. — The Information
Katerra, a closely watched startup founded 6 years ago, had a vision to reinvent the massive construction industry. After a few years of challenges and bailouts from investors, they've announced this week that they will shut down.
The CEO of SoftBank, Masayoshi Son, indicated that Katerra and WeWork were among the investment firm's biggest failures to date. Greensill, one of Katerra's lenders and another major investment of SoftBank's, also recently announced bankruptcy, making it even more difficult to save the company.
Katerra will be cutting thousands of jobs, possibly without severance or owed time-off pay, and is expected to abandon construction jobs previously contracted to Katerra.
To follow the rise and fall of Katerra, check out the related articles below...
5 Comments
Disruption? Apparently not the type they prophesized.
Unfortunate for the employees and now-defunct companies they gobbled up.
Not all acquired firms were impacted as they had autonomy and retained management. It's just back to business as usual for them.
"Not all" is the operative qualifier. Doubt it's simply "back to business as usual" for all of the remainder.
I have dealt with them and have supplied cement to their projects, but their procurement department is full of people who openly ask for commision for issuing PO, which increases the buying cost of materiels.
But again, who cares and when in Rome do as Romans do. :)
You should name the culprits
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