WeWork to lay off 2,400 employees in SoftBank revamp

WeWork to lay off 2,400 employees in SoftBank revamp

The former provided a lifeline to We Company, the parent organisation of WeWork, which was on the brink of collapse having burnt through cash to fuel expansion, pushing the board to pull an initial public offering scheduled for September.

The layoffs began weeks ago overseas and continued this week in the United States, WeWork said.

In its statement, WeWork said the laid off employees will "receive severance, continued benefits, and other forms of assistance to aid in their career transition".

Adam Neumann's $1.7 billion golden parachute could be slashed as SoftBank bosses seek to trim the $9.5 billion rescue deal they struck with WeWork last month, according to Bloomberg.

The company has 12,500 employees on June 30, and there are others who work for the affiliates.

Staff in NY who were let go were offered six months severance if they had been with the company for at least four years, and four months severance for anything below that, one ex-employee said.

Some employees were dismissed on Thursday, laughing and taking photos narcissistic as they exited the building.

Artie Minson and Sebastian Gunningham, who took over as co-chief executive officers following the departure of founder Adam Neumann, will remain in their roles. WeWork laid off 2,400 people, or about 20% of its global workforce, this week.

With WeWork's grim future written on its overvalued, subleasable walls, workers from around the company made an eleventh-hour gambit to organize for, among loftier asks, a dignified end to their jobs.

The perception that it was a technology company was central to the company attaining valuations in the tens of billions of dollars. Before WeWork launched its failed IPO effort, the bond's spread was less than half that.

About 275 employees are participating in the coalition's private slack channel, said Alan Friedman, a senior software engineer who started the group with colleagues in NY last month.

Levy's appointment followed closely after WeWork's decision to lay off 2,400 employees as it tries to get back on track. Alex Cohen, a vice president at the real estate firm Compass in NY, told AFP that WeWork's payroll became bloated as it tried to keep services - space design, engineering and construction management - in house rather than outsourcing them. "In the immediate term, we want those being laid off to be provided fair and reasonable separation terms commensurate with their contributions, including severance pay, continuation of company-paid health insurance and compensation for lost equity".

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