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29 March 2020
INVESTMENT

WeWork cuts another 250 jobs in further attempt to trim costs

The company is facing a public battle with its majority owner SoftBank Group as the investor threatened last week to unravel part of a $3 billion deal to buy back shares from investors and employees

Employees affected by the cuts received the same severance package offered to the 2,400 WeWork staff who had their jobs eliminated in November 2019/Bloomberg

by Bloomberg

WeWork continued has reduced its headcount as part of a months-long effort to lower expenses after its failed initial public offering (IPO) last year.

The New York-based co-working company axed around 250 jobs in its development department and the reductions are not related to the impact of the coronavirus. Last year, as WeWork looked to dramatically cut its expenses after the fumbled IPO, it stopped leasing as many locations, which lowered its need for construction and remodelling.

WeWork’s spokeswoman said, WeWork is continuing to execute its new strategic plan, as a result, we are realigning certain functions and teams to reflect our business priorities.”

Employees affected by the cuts received the same severance package offered to the 2,400 WeWork staff who had their jobs eliminated in November 2020—four months of salary and benefits, or six months for employees who had been with the company for more than four years.

WeWork still faces a rough road ahead as the global pandemic is likely to make its members, more than a quarter of which were on month-to-month leases last year, hesitant to renew contracts or likely to default if they have lost income.


RELATED STORIES: WeWork IPO SoftBank Group

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