WeWork expected to announce major layoffs
WeWork, the co-working business once valued at $47 billion, is expected to announce significant layoffs this month, following reports the company was looking to slash as many as 5,000 roles, or one-third of its workforce, Bloomberg reports.
Now expected to go public in 2020 at a valuation as low as $10 billion, WeWork is also in negotiations with JPMorgan for a last-minute cash infusion to replace the capital expected from the now-postponed IPO, per reports. The company, now a cautionary tale, has been working with bankers in recent weeks to reduce the sky-high costs of its money-losing operation.
News of potential layoffs come about two weeks after co-founder and chief executive officer Adam Neumann resigned from his post and the 9-year-old company postponed its highly-anticipated initial public offering. Neumann is now serving as the company’s non-executive chairman, succeeded by WeWork’s former vice chairman Sebastian Gunningham and the company’s president and chief operating officer Artie Minson.
The embattled company has been struggling to satisfy Wall Street skeptics, who were floored by the company’s eye-whopping valuation. Since Neumann’s resignation, WeWork has begun several cost-cutting initiatives and is reportedly looking to sell off several of its acquisitions, including Managed by Q, Conductor and Meetup.
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