- A fresh round of layoffs at WeWork could reportedly affect over 1,000 staff.
- According to anonymous sources cited by the Financial Times, WeWork CEO Sandeep Mathrani is mulling new cuts to curb the embattled workspace provider’s spending.
- The cuts could reportedly happen in the next two to three months.
- As reported by Business Insider, WeWork laid off 2.400 staff in November 2019 – around 20% of its global workforce – as it reeled from its botched IPO attempt.
- A WeWork spokeswoman declined to comment on the possible cuts.
- Visit Business Insider’s homepage for more stories.
WeWork is reportedly preparing a fresh round of layoffs for 2020 that could impact more than 1,000 staff.
According to anonymous sources who spoke to the Financial Times, WeWork CEO Sandeep Mathrani is mulling new cuts to curb the firm’s spending.
While the sources couldn’t put an exact number on staff who might be cut, one source said the cuts could happen in the next two to three months.
Compounding WeWork’s woes, the coronavirus epidemic is likely to become an albatross around the firm’s neck, as its very business proposition – flexible, co-operative working from the office – sits at odds with the growing need to work from home if possible.
WeWork is in recovery mode, after a botched IPO attempt in August that ended with the ousting of cofounder Adam Neumann as CEO, and a backs-to-the-wall rescue deal with major backer SoftBank that chopped WeWork’s valuation from $US47 billion to just $US8 billion.
Throughout the IPO process, WeWork was plagued by questions about its then-CEO Adam Neumann’s unconventional leadership style, not to mention the viability of WeWork’s business model.
Since the SoftBank deal, the firm has had a change of leadership with Mathrani’s arrival, with a new CFO, chief operating officer,chief product and experience officer, and chief communications officer joining in recent weeks.
Asked by Business Insider about the possible cuts, a WeWork spokeswoman declined to comment.