WeWork to axe 4,000 staff, says report
Bengaluru — Office-sharing startup WeWork is planning to cut as many as 4,000 jobs as a part of a turnaround plan put in place by top shareholder SoftBank after it took control of the company this week, Financial Times reported on Wednesday.
The job cuts will amount to just under one-third of WeWork’s global workforce, and about 1,000 of the cuts will hit employees such as janitorial staff, the report said, citing people with direct knowledge of the plans.
Tokyo-based SoftBank agreed to spend more than $10bn to take over WeWork on Tuesday, giving a near $1.7bn payoff to the startup’s co-founder Adam Neumann to relinquish control.
WeWork's new executive chair Marcelo Claure wrote in a memo to employees earlier on Wednesday warning there would be layoffs. He did not know how many.
“Yes, there will be layoffs — I don’t know how many — and yes, we have to right-size the business to achieve positive free cash flow and profitability,” Claure, who serves as SoftBank’s COO, wrote.
Claure also said that SoftBank was using WeWork to “reimagine” its headquarters in Tokyo. He added that he was committed to WeWork doing the same across all SoftBank properties around the world, including some of its portfolio companies.
WeWork was not immediately available for comment.
Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.
Please read our Comment Policy before commenting.