Troubled office-sharing company WeWork is being taken over by Softbank, with the Japanese investment firm looking to "double down" on the firm with a deal to ouster controversial founder Adam Neumann and provide five billion U.S. dollars' worth of additional funding.

Following several reports on Tuesday, Softbank confirmed the deal to take an 80-percent stake in WeWork, saying in a statement that it is a "firm believer that the world is undergoing a massive transformation in the way people work," and added it has "decided to double down on the company by providing a significant capital infusion and operational support."

WeWork will be an associate of Softbank rather than a subsidiary, with the Japanese firm deciding not to take a majority on the board of directors. Neumann will become a "board observer," with the board set to be expanded and "receive voting control over Mr. Neumann's shares."

Neumann's behavior and control of the company was a major factor in the failure of WeWork's planned initial public offering earlier this year. Despite being removed as chief executive last month, the Wall Street Journal reported Tuesday that Neumann would receive a payoff worth as much as 1.7 billion U.S. dollars for agreeing to step down as chairman and giving up his voting rights.

According to Bloomberg, Neumann's huge payout has caused anger among staff at WeWork, where management is considering cutting thousands of jobs, with many workers told they will not even receive severance pay.

The takeover of WeWork values the firm at between 7.5 and 8.0 billion U.S. dollars, a huge drop from Softbank's earlier estimates of around 47 billion U.S. dollars, according to CNBC.

Several major executives have left the firm in recent months, after a period of turmoil that saw WeWork's plans for an IPO backfire dramatically. Financial data released ahead of the planned listing showed the company made losses of 1.9 billion U.S. dollars in 2018. Analysts are concerned over the company's business model and exposure to fluctuating real estate prices.

WeWork had expanded at a rapid pace in the Chinese market, but earlier this month Nikkei Asian Review reported the company had halted further growth in China. New planned locations for 2019 and 2020 will still open, however, further expansion in 2021 and beyond has been postponed.

The company's operations in the Chinese mainland, Hong Kong Special Administrative Region and Taiwan Province brought in revenue of 100 million U.S. dollars in 2018, with its locations in the Chinese market accounting for 15 percent of its total assets worldwide.