WeWork Layoffs to Total 4,000 to 6,000 Over Five Years

The embattled shared-space giant could layoff had its remaining global workforce.

WeWork layoffs are coming, and the number could range between 4,000 and 6,000 employees. The WeWork layoffs are set to start this week. According to International Business Times, the company will make an announcement on Tuesday. The New York Times says that the firm will lay off about one-third of its workforce by June 2020.

“In the areas of the business that do not directly support our core business goals, we have to make some necessary job eliminations,” WeWork chairman Marcelo Claure said in an email to employees. “We are going to eliminate and scale back certain functions and responsibilities, which will increase efficiency and also accountability.”

The NYT report says we’ll see 1,000 layoffs from “noncore businesses, like a private school in Manhattan that WeWork set up.” The report also stated that the firm will layoff about 1,000 maintenance people who work in the building. The maintenance layoffs has set off a wave of anger among employees after the firm announced plans to outsource this work.

Many workers are unhappy with the news that co-founder and ex-CEO Adam Neumann received $1.7 billion to exit the firm last month. Reports prior to his exit state that Neumann had fired employees to cut costs and then would spend money lavishly.

WeWork Layoffs Come After Failed IPO

The company is slashing payroll to stabilize its balance sheet after receiving a $9.5 billion bailout from Softbank. The firm is still aiming for a potential IPO in the year ahead with a significantly lower valuation than its initial goal of $47 billion. Current estimates peg the valuation at roughly $8 billion. Meanwhile, WeWork is in talks with T-Mobile CEO John Legere to appoint him as CEO.

Finally, a group of employees has created the WeWorkers Coalition. The group sent a letter to managers in November. In the letter, the ex-employees said they “don’t want to be defined by the scandals, the corruption and the greed exhibited by the company’s leadership.”

Related: Bad to Worse: WeWork Bonds are Plunging

 

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December 6, 2019

SIFMA: US Economy Will Expand in 2020 But at a Moderate Pace

SIFMA: US Economy Will Expand in 2020 But at a Moderate Pace
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