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WeWork plans thousands of job cuts after shelving IPO

WeWork plans thousands of job cuts after shelving IPO
  • WeWork is planning to lay off between 10 and 25% of its workforce, a source familiar with the situation told Business Insider. 
  • The cuts come as new CEOs Artie Minson and Sebastian Gunningham try to focus on WeWork’s core business after a tumultuous lead-up to a shelved initial public offering.
  • To read our investigation into WeWork’s wild culture, click here.

WeWork is planning massive layoffs that will number in the thousands as the new leaders of the embattled shared-space company look to focus on its core business and reduce costs, a source familiar with the matter said. 

WeWork executives haven’t yet finalized the specific cuts, but the numbers will be “in the thousands” — though less than the 3,000 to 5,000 layoffs that had been laid out in earlier media reports, the source said. 

WeWork has about 12,500 employees, so a cut of 1,000 to 3,000 people would be about 10 to 25% of its staff.  

Bloomberg reported earlier on Thursday that WeWork had announced layoffs to staff but did not provide a number. 

Read more: Sex, tequila, and a tiger: Employees inside Adam Neumann’s WeWork talk about the nonstop party to attain a $100 billion dream and the messy reality that tanked it 

Job cuts have been rumored for weeks as cofounder Adam Neumann stepped down and new co-CEOs Artie Minson and Sebastian Gunningham stepped in to replace the unconventional leader. 

Minson and Gunningham are also looking to sell some of the companies WeWork purchased in recent years, as well as the Gulfstream G650 the company bought last year for $60 million. WeWork is also considering slowing its expansion in China, according to The Wall Street Journal. 

The company expanded rapidly in recent years, counting more than 500 locations globally this year from just over 100 in 2017. The growth was fueled by billions in venture-capital investments, most notably from the Japanese investor SoftBank.

On Monday, the new CEOs said they would shelve its initial public offering, though they said in a statement that being a public company was still the goal.

Read more: How WeWork spiraled from a $47 billion valuation to talk of bankruptcy in just 6 weeks 

Minson and Gunningham said in a statement: “We have decided to postpone our IPO to focus on our core business, the fundamentals of which remain strong. We are as committed as ever to serving our members, enterprise customers, landlord partners, employees and shareholders. We have every intention to operate WeWork as a public company and look forward to revisiting the public equity markets in the future.”

Have a WeWork tip? Contact this reporter via encrypted messaging app Signal at +1 (646) 768-1627 using a non-work phone, email at mmorris@businessinsider.com, or Twitter DM at @MeghanEMorris. (PR pitches by email only, please.) You can also contact Business Insider securely via SecureDrop.

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