- In an all-company meeting on Thursday, WeWork CEO Sandeep Mathrani announced that the company would guarantee at least 50% of employee bonuses this year, and would adjust yearly goals to fit the pandemic.
- Mathrani said it was “more important” to reward employees during challenging years than good years.
- Softbank put another $1.1 billion into the office company earlier this year and the company lost 81,000 members in the second quarter of the year.
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WeWork will be paying each employee at least 50% of their target bonus, and be re-evaluating employee goals in light of the pandemic, CEO Sandeep Mathrani told employees in an all-company meeting Thursday.
The guaranteed bonus comes as the company, like other office real estate companies, has seen challenges in the wake of the pandemic and six months of remote work.
Employees were told that it was “more important” to reward people in hard times than in good years by Mathrani, an employee who was at the meeting told Business Insider.
WeWork’s bonuses are typically determined by a mixture of company and personal performance, with employees receiving their whole target bonus when both they and the company perform well, according to a source familiar with the situation. Mathrani also told employees the company would be reevaluating and setting out new goals for WeWork and its employees in light of the pandemic.
The news of the guaranteed bonus comes after SoftBank invested another $1.1 billion in the company earlier this year, giving WeWork $4.1 billion in cash and unfunded cash commitments.
WeWork, like other real estate and flexible-office providers, is grappling with the global effects of the pandemic on its business. It lost 81,000 members in the second quarter of 2020, and saw its revenue rise only 9% year-over-year in the second quarter after ballooning 45% year-over-year in the first quarter.
The has also company turned to big commercial real estate firms like JLL and CBRE to market its large vacancies in New York City and Los Angeles, Business Insider reported in July.
WeWork laid off hundreds of employees earlier this year, as did other flex-office companies like Convene, Industrious, and Knotel.
Departments such as business operations, sales, and physical products, which includes design, were affected, and IT lost about 200 jobs. In June, the company said in a filing that 314 employees were cut in the state of New York.
The company has kept its US locations open and is reconfiguring spaces to include more sanitation and distance.
This week WeWork launched new All-Access and On-Demand products that offer hot-desk rentals across locations and hourly desk rental to meet the new realities of the office in the pandemic and remote work fatigue after six months of working at home.