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WeWork can lay off thousands



WeWork is preparing to cut at least 4,000 people from its workforce, while trying to stabilize after the company's brackish growth has caused heavy losses and led to the brink of collapse, two people with knowledge of the case so.

The cuts are expected to be announced as early as this week and will take place across WeWork's sprawling global operation. According to the plan, the company's core business of leasing office space would lay off 2,000 to 2,500 employees, one person said. Another 1,000 employees will leave while WeWork sells or closes non-business establishments, such as a Manhattan private school that WeWork created. In addition, approximately 1

,000 employees in building maintenance will be transferred to an external contractor. In total, these employees would represent around one-third of the 12,500 WeWork employees at the end of June.

But one of the people said that the company could throw as many as 5,000 to 6,000 employees.

The staff reductions will be included in a five-year plan to review WeWork that can be presented to employees as early as Tuesday, said the people, who spoke on condition of anonymity to discuss the layoff plans.

The resignations represent the human costs of a remarkable reversal of WeWork's fortunes. Under its co-founder and former CEO, Adam Neumann the company piled billions of dollars into an erratic expansion that included adding huge office space to the world's most expensive cities, offering discounts to lure tenants and buy other businesses. WeWork, which rents out office space from landlords, refurbishes it and leases it to customers, staged plans for an initial public offering in late September after investors were cut off by the company's losses and had questions about the company's governance.

As of December 9th. , WeWork cleaning and plant jobs will be outsourced to JLL, a real estate service company, or one of its partners, according to an email sent to affected employees last week reported by The New York Times. WeWork has assured employees that each member of the cleaning and construction team will keep their job and receive the same salary level and comparable benefits. But employees who choose not to transfer will lose their jobs and receive no severance pay, according to a document provided to employees reported by The Times.

The changes have made many employees nervous, according to interviews with workers and Slack messages reviewed by The Times, while he fears some employees will eventually lose benefits or be forced to work different schedules.

In the Slack messages, one of the WeWork plant employees said that hearing about outsourcing was like being informed of a family death. Another employee said the decision showed that management was concerned about workers' well-being and made decisions based on what would save the company the most money.

David Yaffe-Bellany contributed reporting.


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