There’s more bad news incoming from WeWork, though its the employees this time facing the axe. WeWork has announced this Thursday that it would be laying off 2,400 employees, almost 20% of its workforce, after the debacle it has seen on The Wall Street.
The layoffs were long anticipated and are by far the biggest move from the Softbank backed company, which has already invested $9.5 billion in saving the company and will soon take over 80% of WeWork’s shares to focus on company’s core business.
Under the leadership of co-founder and ex-CEO Adam Neumann, WeWork expanded beating all parameters of expansion, entering areas like schools and apartment buildings, with no sign of profits.
A company spokesperson said;
“As part of our renewed focus on the core WeWork business, and as we have previously shared with employees, the company is making necessary layoffs to create a more efficient organization.”
The layoffs are a clear sign on WeWork’s detoriated fates. From being at a net worth of $47 billion and intending to go public, to crashing into a less than $10 Billion company. The figure could have been far less, had Softbank not come to rescue its own massive investments in the company. WeWork shelved its IPO plans on September 30.
WeWork mentioned that the job cuts began weeks ago in the oversees and are continuing this week in the United States.
The company stated;
“This workforce reduction affects approximately 2,400 employees globally, who will receive severance, continued benefits, and other forms of assistance to aid in their career transition.”
The company had 12,500 employees on June 30, in addition to others who worked for affiliates.
As per an ex-employee, the workers who served the company for over four years were offered six months severance, and for any other employee the offer was of four month severance.
The layoffs have also come in a time when the company is considering to change its existing CEOs Artie Minson and Sebastian Gunninghamv, who have been holding their chair since September 2019.