According to media reports, WeWork plans to cut at least 4,000 employees, as early as this week. According to the source, The main business of WeWork’s sublet office space will cut between 2,000 and 2,500 employees, while another 1,000 will leave as the company sells or closes other businesses. It was also reported that another 1,000 building maintenance personnel would be transferred to an external contractor.
The president’s staff accounted for about a third of the company’s 12,500 employees at the end of June. A source told The Times that the number of job cuts could rise to 5,000 to 6,000.
The move comes at a time when the company is trying to limit its losses in an attempt to go public, but it has decided to abandon it. The office-sharing company’s IPO was shelved because of questions about its corporate value sand and corporate governance.
According to the Times, the layoffs are part of a five-year plan and the layoff notice could be sent to employees as early as Tuesday.
Japan’s SoftBank group last month announced a plan to bail out the troubled company. SoftBank invested in WeWork’s parent company, We Inc.
WeWork reported a loss of $1.25 billion last quarter, more than double the company’s loss in the same period last year. (Wind)