Layoffs in WeWork began much before the outbreak of COVID-19. One of the largest chain of coworking spaces has had a turbulent year after pulling its IPO in September and ousting the co-founder and CEO, Adam Neumann. The pandemic has created more problems for WeWork and added on to its concerns over business continuity. Some customers have said to have stopped paying rent or chosen not to renew their contracts. While WeWork is, in turn, seeking relief from some of its landlords, it needs a more robust plan to cope through this crisis.
For now the turbulent market conditions continue to affect the jobs at WeWork. As per the report, the troubled coworking giant eliminated more jobs on Thursday as part of an ongoing series of cuts. After this week’s cuts, WeWork will terminate more jobs over the next month. The number and nature of jobs affected remains unknown.
As per previous weeks report these job cuts are not the result of the pandemic but part of WeWork’s major restructuring plan. “As WeWork continues to execute its strategic five-year plan we are realigning certain functions and teams to reflect our business priorities,” said a press note.
WeWork’s strategic five-year plan would have to be revisited given the new unknown challenges the current global health crisis brings with it. Most organizations have already begun to embrace working from home. Leadership has realized how some functions could easily be carried out from home or can be done remotely. What does this mean for coworking companies like WeWork? Until we have a cure for COVID-19, social distancing will be the new norm. Even if workspaces are allowed to open, businesses might look to cut costs at least for some time now and do away with the need to have a physical space to carry out their work. How this new normal of work will impact WeWork’s strategic plan would be interesting to follow.