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WeWork expected to lay off 2,000 workers as soon as this week



A WeWork logo is seen at a WeWork office in San Francisco, September 30, 2019.

Kate Munsch | Reuters

WeWork is expected to lay off at least 2,000 people, about 13% of staff, as of this week, the Guardian newspaper reported.

WeWork staff told the Guardian that they believe the cuts will not stop there, suggesting that several of the company's 15,000 employees could be fired. The information reported in September that executives and bankers have discussed cutting up to one-third of these workers. The composite startup tries to turn its fortunes into painful cost-cutting measures.

Employees also told the Guardian that little or no work is being done at the company and new projects have been put on hold.

WeWork declined to comment on the Guardian. Company representatives did not immediately respond to CNBC's request for further comment.

Last month, the startup contacted plans to go public. The much-awaited IPO prospect in August revealed a huge $ 900 million loss in the first six months of 201

9 and drew skepticism over the company's governance. WeWork had a private market valuation of around $ 47 billion, but the potential value in the public market had been significantly reduced.

There has also been a showdown between former CEO Adam Neumann and SoftBank boss Masayoshi Son, who has invested billions in the start-up. Neumann resigned last month. It was also reported that SoftBank has prepared a financing package to take control of the company and on to the Neumann sideline, which is also one of the founders.

WeWork rents office space to start-ups, freelancers and businesses by investing in real estate in some of the most expensive markets around the world. It makes money back as companies and individuals pay the rent or membership fees.

Read more about Guardian's report on WeWork's plans to lay off 2,000 employees here.

CNBC's Alex Sherman and Lauren Feiner contributed to this report.


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