WeWork to lay off 2,400 workers worldwide

The dismissed workers "will receive severance, continued benefits, and other forms of assistance to aid in their career transition," claims WeWork.

22nd Nov 2019
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Embattled office-sharing startup WeWork said on Thursday it will lay off 2,400 employees worldwide as the company struggles to reorganise amid mounting losses.


The news comes in the wake of the company's failed attempt to launch an initial public offering.


The dismissed workers "will receive severance, continued benefits, and other forms of assistance to aid in their career transition," a spokesperson said in a statement.


The company told shareholders earlier this month it had lost almost $1.3 billion in the third quarter, more than twice the losses recorded in the same period a year earlier.


wework



The painful layoffs underscore the decline of what had previously been one of America's most celebrated startups that left a mammoth footprint in the commercial real estate of major world capitals.


As investors questioned the company's value, WeWork in September scrapped plans for its Wall Street debut, forced out chief executive Adam Neumann and was bailed out by Japan's SoftBank Group.


Neumann stepped down from the company's board of directors with a $1.7 billion exit package while its value was slashed to $8 billion – a far cry from its $47 billion valuation at the start of this year and just a fraction of the sum envisioned as part of the failed IPO.


Thursday's statement said the layoffs had begun "weeks ago" in regions around the world and were necessary "to create a more efficient organization."


"These are incredibly talented professionals and we are grateful for the important roles they have played in building WeWork over the last decade," it said.


This August, WeWork announced its foray into the Pune market where it has taken on lease over an office space of 1.22 lakh sq ft to launch 24th centre in the country.


According to sources, WeWork has taken 1,22,165 sq ft office space in Panchshil Realty's commercial project 'Panchshil Futura' in Pune, Maharashtra. This new centre in Pune, expected to be launched early next month, will have a capacity of over 2,000 seats, they added.



(Disclaimer: Additional background information has been added to this PTI copy for context)



(Edited by Saheli Sen Gupta)


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