Finance

WeWork is reportedly planning to layoff at least 4,000 people as part of a major restructure

  • WeWork is planning on laying off at least 4,000 people from its workforce, The New York Times reported on Sunday.
  • A person with knowledge of the matter told The Times that the company’s core office-sharing business would slash 2,000 to 2,5000 employees from its global ventures, along with other employees from its non-core businesses and maintenance employees. 
  • A second source with knowledge of the matter said the number of layoffs could be as high as 5,000 or 6,000, which would represent about a third of WeWork’s workforce. 
  • The company is recovering from major losses after a failed IPO in September and reported a loss of $1.25 billion in the third quarter. 
  • Visit Business Insider’s homepage for more stories.

WeWork is planning on laying off at least 4,000 people from its workforce, The New York Times reported on Sunday. 

According to The Times, the company — which is recovering from major losses after a failed IPO in September — is expected to announce the cuts as early as this week. 

A person with knowledge of the matter told The Times that the company’s core office-sharing business would slash 2,000 to 2,5000 employees from its global ventures. The source added that around 1,000 maintenance workers will be transferred to an outside contractor and 1,000 employees from noncore businesses will exit the embattled real estate startup.

According to The Times, this exodus represents roughly a third of the company’s 12,500 employees. 

A second source with knowledge of the matter said the number of layoffs could be as high as 5,000 or 6,000. 

The announcement will be part of the company’s five-year plan to completely overhaul the business recovering from the brink of bankruptcy, the sources said. The announcement could be presented to staff as early as Tuesday, they added.

A spokesperson for WeWork declined to comment on the report. 

WeWork received a $10 billion bailout from Japanese investment firm SoftBank, which took control of the company in October after it failed to go public. SoftBank also gave CEO and cofounder Adam Neumann $1.7 billion to step down from his position as chairman of the board at WeWork.

Last week, WeWork said it lost $1.25 billion in the third quarter. 

SoftBank also took a massive hit in the July to September period while injecting money into WeWork, losing a record $6.46 billion. 

 

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

17 − 7 =

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Most Popular

To Top