Nov 18, 2019

NYT: WeWork to lay off thousands of workers

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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WeWork to lay off 2,400 employees

Illustration: Sarah Grillo/Axios

WeWork is laying off 2,400 employees as a cost-cutting measure, CNBC reports.

"The process began weeks ago in regions around the world and continued this week in the U.S. This workforce reduction affects approximately 2,400 employees globally, who will receive severance, continued benefits, and other forms of assistance to aid in their career transition. These are incredibly talented professionals and we are grateful for the important roles they have played in building WeWork over the last decade."
— A spokesperson told CNBC
Go deeperArrowNov 21, 2019

WeWork's axed IPO driving the yield on its bonds up

Data: FactSet; Chart: Axios Visuals

In mid-August the yield on WeWork's 2025 junk bond was 6.8%, and this week it hit 16.1%.

The state of play: WeWork's IPO was pulled at the end of September, depriving the company of billions of dollars in IPO proceeds as well as even more liquidity in the form of an attached loan commitment. That news drove the yield on WeWork's bonds up to 11.6%.

Go deeperArrowNov 21, 2019

WeWork's China rival files for U.S. IPO

Ucommune, WeWork's largest rival in China, on Wednesday filed to raise $100 million via an IPO on the New York Stock Exchange.

Why it matters: This could test investor interest for WeWork's business model, minus the governance issues that ended its own IPO hopes in October.

Go deeperArrowDec 11, 2019