WeWork Says Thousands of Its Phone Booths Could Have Dangerous Levels of Formaldehyde After People Complained About Odor and Eye Irritation The company warned tenants that many of the offices' phone booths were being removed due to 'potentially elevated levels of formaldehyde.'

By Aaron Holmes

This story originally appeared on Business Insider

Reuters via BI

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.

Related: 12 Crazy Things You Should Know About WeWork, the Coworking Company Valued at $20 Billion

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.

Colleen Wong, a director with the Global Entrepreneurship Network, said she noticed a pungent smell in the phone booths at WeWork's Rosslyn location in Arlington, Virginia, where she's a tenant.

"I always noticed, from the first time I entered a phone booth, a strong chemical odor," Wong told Business Insider in a Twitter direct message. "I assumed it was a new building / equipment type smell. Kind of like glue or a new car."

Other WeWork tenants 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.

Related: What Is Facility Management and When Should a Business Start Thinking About It?

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 percent. 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.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

JPMorgan Shuts Down Internal Message Board Comments After Employees React to Return-to-Office Mandate

Employees were given the option to leave comments about the RTO mandate with their first and last names on display — and they did not hold back.

Innovation

4 Ways Market Leaders Use Innovation to Foster Business Growth

Forward-thinkers constantly strive to diversify and streamline their products and services, turning novelties into commodities desired by many.

Operations & Logistics

How to Master Peak Season Sales — and Demand — With These Warehouse Tips

In today's unpredictable retail world, the ability to handle atypical peak seasons effectively is a critical differentiator. Here's how you can streamline and optimize your warehouse operations.

Business News

A Company That Made $50M Selling Side Hustle Courses on AI Book Writing Is Under Federal Investigation

Publishing.com, which sells courses and tools for generating AI-written books, is under investigation for alleged aggressive sales tactics, according to a new report.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Leadership

'Scaring People Is Addictive': The Creator of 'Wolf Man' and 'Saw' on Monetizing Your Nightmares

The co-writer and director of "Wolf Man," Leigh Whannell, discusses how he built a career one terrifying flick at a time.