WeWork Execs Tell Employees That About 2,000 Layoffs Are Coming—and Soon

Executives have recently pegged the amount at about 2,000, including jobs in business units that may be spun off, said people familiar with the discussions. Executives said clients and tenants were still interested in WeWork’s offerings, and implored staff to focus on its core business and customers. Since WeWork’s plan for an initial public offering went badly awry, leading to the ouster of co-founder Adam Neumann as CEO, the company’s new leadership has said it plans to re-emphasize its office-rental business. More must-read stories from Fortune:

—The cheapest mobile plans for your iPhone 11—How Russian PR firms plant stories for companies in U.K. At the 2019 global summit, speakers including Jaden Smith and Adam Rippon addressed WeWork employees. A WeWork representative declined to comment. Deliberations are ongoing, and the number could change. One employee asked if the event would still take place in January, and was told by executives it would not go ahead. Bloomberg reported last week that WeWork parent We Co. The discussion took place at WeWork’s Manhattan headquarters, and was live-streamed to all employees. The executives also said they expect WeWork to continue to grow, but at a slower pace, and that the company planned to make some divestitures as part of an effort to “right-size” its business, according to the attendees. WeWork’s leaders told staff that job cuts are coming as soon as this month. The company is also canceling its upcoming WeWork Global Summit in Los Angeles, once a famously over-the-top event. was considering job cuts, and the eliminated positions could number in the thousands. Minson apologized to staff at the meeting about the uncertainty that has roiled the company in recent weeks. The cuts will be handled as “humanely” as possible, McKelvey and Minson said, according to people who asked not to be identified because the forum wasn’t public. That would be 16% of WeWork’s 12,500 employees, as of June. In a meeting with employees Thursday, new co-chief executive officers Artie Minson and Sebastian Gunningham and co-founder Miguel McKelvey said that cost-cutting efforts would include layoffs, according to attendees. As part of that, WeWork is said to be exploring a sale of several of its recent acquisitions, including event organizing platform Meetup, office management startup Managed by Q, and marketing company Conductor. news outlets, social media—From premium speakers to privacy, Amazon has a plan to make Alexa sound even better—Meet the women leading Netflix into the streaming wars—Why Apple is offering cheaper streaming and iPhonesCatch up with Data Sheet, Fortune’s daily digest on the business of tech.
Source: fortune

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