WeWork is preparing to slash at least 4,000 jobs in its efforts to stabilize itself. The cuts are expected to be announced as early as this week and will take place across WeWork's global operations.
Under the plan, the company's core business of subletting office space would let go of 2,000 to 2,500 employees. An additional 1,000 employees will leave as WeWork sells or closes down non-core businesses, like a private school in Manhattan that WeWork set up. In addition, around 1,000 building maintenance employees will be transferred to an outside contractor.
Together, these employees would represent around a third of the 12,500 people WeWork employed at the end of June. Some media reports have also speculated that the company could shed as many as 5,000 to 6,000 employees.
The cuts are a part of a five-year plan to overhaul WeWork that could be presented to employees as early as Tuesday (Nov 19). The cuts come after a tumultuous few months. In September, it withdrew plans to go public and CEO Adam Neumann was replaced. Last month, the coworking startup received a $5 Bn rescue package from SoftBank, through which the Japanese conglomerate acquired 80% ownership in the coworking startup. With these cuts, the company hopes to arrest its heavy losses which followed the company's breakneck growth. How far this plan will succeed is still to be seen.