WeWork plans to layoff up to 6,000 employees—about 30% to 50% of its workforce
—according to a report in theThe real estate rental company currently employs 12,500 people in its offices throughout the United States and internationally. The downsizing will primarily adversely impact three main groups: employees in the divisions responsible for subletting office space, personnel at ancillary nonessential businesses that the company acquired and the maintenance staff.
Astute to this trend, Neumann capitalized on this movement. He took the boring and stale shared-office-space concept , added a lo-fi, hip-hop music background soundtrack, free-flowing kombucha and the air of being part of a young, cool club and people clamored to set up their offices at WeWork. Investors pushed back on the ridiculous $47 billion valuation and, ultimately, the investment bankers shelved the IPO deal. The company burned through $1.6 billion in 2018 and analysts believe it will lose over $1 billion this year.
This type of story happens all too often. The corporate executives make aggressive and optimistic business plans. When they work out right, the top brass earn lavish compensation. When things don’t work out well, they still receive golden parachutes and are well taken care of financially.
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WeWork reportedly planning to layoff thousands as it attempts to reverse its fortunesWeWork could lay off as many as 6,000 employees as part of painful cost-cutting measures to turn its business, the New York Times reported.
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WeWork chairman tells employees layoffs will begin this week - Business InsiderRead the leaked email from WeWork's chairman telling employees that layoffs will begin 'in earnest' this week
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