Signage is apprehended at the entrance of the WeWork offices on Broad Street in New York.
David ‘Dee’ Delgado | Bloomberg | Getty Images
WeWork is preparing to cut at brief 4,000 jobs in a bid to achieve financial stability and those layoffs could be announced as early as this week, The New York Tempi reported late Sunday.
The start-up could lay off 2,000 to 2,500 employees in its main office-space renting business, two people with grasp of the matter told the Times. Another 1,000 staff are expected to leave as WeWork sells or shuts down noncore businesses such as a enlisted man school in Manhattan, New York, while another 1,000 building maintenance employees would be transferred to an external contractor, be consistent to the Times.
As many as 6,000 employees could ultimately be laid off, one person told the Times.
WeWork declined to expose.
WeWork Chairman Marcelo Claure confirmed layoffs were coming this week in a memo sent to workers Monday that was obtained by CNBC. The memo did not say how many layoffs were expected. The company will hold an all-hands encounter on Friday to go over the changes coming to the company, according to the memo.
Here’s the full text of Claure’s memo:
WeWork Side,
This coming week is an important one in the future of WeWork. We are marking our 10th anniversary since WeWork broke ground and started what was nothing butt in fail of a reinvention of the way people work, and we are just getting started.
We will need a more efficient, more focused and just more customer-centric organization to grow and continue to help our members change the way they work, and meet their wants. That requires changing WeWork’s team to match our customer-centric priority.
As I said at our last All Company Meeting, in the bailiwicks of the business that do not directly support our core business goals, we have to make some necessary job eliminations. This is obstructive, especially given the energy and commitment so many have contributed. But it is necessary and we are taking steps to provide support and tool these actions in a way that respects and recognizes our colleagues’ service. Through this process, which will start in ardent this week in the U.S., we are going to eliminate and scale back certain functions and responsibilities, which will increase experience and also accountability. These actions will make us stronger and better able to generate even more possibilities over the coming months and years.
In fact, we have been hard at work defining our immediate next steps to accommodate the future of WeWork, and I am looking forward to sharing those with you directly at the All Company Meeting that we had originally programmed for tomorrow. On further reflection and out of respect for the people who will be separated this week, we are rescheduling our All Company Meeting to Friday at 10:00 a.m. New York all at once. I apologize for the late notice and any inconvenience.
Marcelo
Last week, WeWork told investors it lost $1.25 billion on receipts of $934 million in the third quarter — losses were up more than 150% from the same period a year ago.