Nov 17, 2019 - Economy

NYT: WeWork to lay off thousands of workers

Rebecca Falconer

An illustration of a sinking WeWork being thrown a lifeline. — Illustration: Aïda Amer/Axios

WeWork is set to lay off at least 4,000 employees as early as next week as the company grapples with major losses that have threatened its very existence, the New York Times reported Sunday evening.

Details: About a third of the 12,500 people that WeWork employed across its global operation at the end of June would be impacted by the layoffs, NYT notes, citing two people with knowledge of the matter. One source placed the figure as high as 5,000–6,000.

By the numbers: Per the Times, 2,000–2,500 workers would be impacted in WeWork’s main business of subletting office space. Another 1,000 would leave as the firm "sells or closes down noncore businesses," while 1,000 building maintenance workers are to be transferred to an outside contractor.

Driving the news: WeWork reported last Wednesday a $1.25 billion net loss for the third quarter, more than doubling its year-earlier number.

Axios' Dan Primack notes the results "represent WeWork's final quarter under the leadership of Adam Neumann, who was ousted after a failed IPO."
Dan reported last month that the company "doesn't have enough money to finish out 2019."

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Editor's note: This article has been updated with new details throughout.

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NYT: WeWork to lay off thousands of workers

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