Business WeWork lays off 2,400 employees -

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Ahriman

Vivere Militare Est.
kiwifarms.net

- The beleaguered office-sharing start-up is laying off 2,400 employees in an attempt to right-size the business.


- The layoffs come after several tumultuous months for WeWork, which were marred by a botched IPO, mounting losses and co-founder Adam Neumann’s resignation.

- WeWork recently detailed sweeping changes to its business, including divesting noncore ventures.

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A pedestrian walks by a WeWork office on October 07, 2019 in San Francisco, California. Days after withdrawing its registration for an initial public offering, WeWork also warned employees that the company could be set to lay off nearly 2,000 people, about 16 percent of its workforce.

WeWork is laying off 2,400 employees as it works to cut costs and right-size the business, the company confirmed to CNBC.

In a statement, a WeWork spokesperson said the cuts were being made as part of the company’s efforts to “create a more efficient organization” and refocus on the core office-sharing business. The job reductions represent 19% of WeWork’s total workforce, which amounted to 12,500 employees as of June 30, according to an SEC filing.

“The process began weeks ago in regions around the world and continued this week in the U.S.,” the spokesperson said. “This workforce reduction affects approximately 2,400 employees globally, who will receive severance, continued benefits, and other forms of assistance to aid in their career transition. These are incredibly talented professionals and we are grateful for the important roles they have played in building WeWork over the last decade.”

Leading up to the announcement, reports of forthcoming job cuts had been circulating for weeks. The New York Times reported on Sunday that WeWork could cut at least 4,000 jobs across its core office-sharing business and some side ventures. In October, Marcelo Claure, WeWork’s new executive chairman, warned that layoffs would be on the way but didn’t say how many would be announced.

Claure said in a memo to employees earlier this week that the company will hold an all-hands meeting at 10 a.m. ET on Friday to address the changes slated for the company.

The layoffs come after several tumultuous months for WeWork. In September, the beleaguered start-up pulled its IPO filing after investors balked at its mounting losses and unusual corporate governance structure. The scrutiny forced WeWork co-founder Adam Neumann to step down from his role as CEO, with Sebastian Gunningham and Artie Minson stepping in as co-CEOs.

WeWork was poised to run out of money in a matter of weeks, but secured an 11th-hour bailout deal from SoftBank, its biggest investor. With a new owner in place, WeWork is expected to make sweeping changes to its business, including divesting noncore businesses and focusing on enterprise customers, instead of small and mid-sized clients. However, the company continues to bleed cash, reporting $1.25 billion in losses for the third quarter, widening sharply from the same period last year.

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The drama behind this company pretty much deserves its own KF thread -the CEO is pretty much a filthy rich lolcow- it'll be a case study for sure.
 

Trig.Point

I wouldn't start from here.
True & Honest Fan
kiwifarms.net
> WeWork

not anymore you don't, cocksuckers!
This is a really good video, explaining the history. It doesn't need to explicitly all Neumann a scumbag, it just has to describe some of the things he did a neutral way.

 

Trig.Point

I wouldn't start from here.
True & Honest Fan
kiwifarms.net
Wait what is this WeWork shit? Is it like a JobCorps or something? Can someone tl;dr me on who they are?
eta. thanks @Trig.Point for the video, watching now.
Essentially they were renting out office space. The idea being that they'd do short term leases, or shared workspaces particularly for the tech sector. The shared workspace/meeting place concept was always going to be low margin, and essentially was competing with Coffee houses on the low end, and managed office buildings on the high end (Office buildings offer short term leases, often you'll get additional services like receptionist etc)

In reality the whole company was pointless, because all they were do was leasing a building then subletting it. They weren't adding any real value, and their work practices were so chaotic that they weren't even manageing the buildings properly. Aall they were was an additional middleman between a tennant and the owner of the building.
 
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AirdropShitposts

Violet Hargrave's Assistant Researcher
kiwifarms.net
The cool part about the founder was when he convinced all those rich people it was some kind of "sustainable" revolutionary program, then admitted he actually didn't really have a business plan. And he was pretty crazy and drug addicted or whatever and essentially just spent half a billion of the money raised on himself. Including buying properties and leasing them back to the company; all while nobody really had any idea of what the company was supposed to actually do even though they kept hiring all these people.

And then they still gave him like $2 billion to go away while also paying him a consulting fee!
 

Alec Benson Leary

Creator of Asperchu
Christorical Figure
kiwifarms.net
In reality the whole company was pointless, because all they were do was leasing a building then subletting it. They weren't adding any real value, and their work practices were so chaotic that they weren't even manageing the buildings properly. Aall they were was an additional middleman between a tennant and the owner of the building
Which is why this turn of events is not the least bit surprising.
 

Marissa Moira

kiwifarms.net
Remember how the CEO was a clueless faggot and got ditched by his private jet because he brought enough weed for himself that the pilots would have been arrested for drug trafficking.

We're not talking about a company run by competent people, this is on par with that stupid packet juicer company that spend billions of dollars adding DRM to capri-sunesque juice packs claiming they would be "fresh" but all the machines were squeezing was the rendered pulp and in the end you didn't need the machine anyways. That company lasted around 16 months.
 

Damn Near

It's lovely to be here, thank you for having me
kiwifarms.net
I worked at a startup in a WeWork building for a bit, it's not surprising they're shitting money out of their asshole. Every floor had things like beer taps, pool tables, lounges, food, beverages, pretty much aping whatever millennial-daycare shit Google is doing in their offices. In sum, fucking faggots.
 

Trig.Point

I wouldn't start from here.
True & Honest Fan
kiwifarms.net
Why did they pay him off at all?
I imagine it's because as the company goes into administration they want the cooperation of the former CEO.

Also as detailed in the video Neumann did some creative (but not illegal) book keeping. Such as personally tradmarking "WeWork" and then selling it to the company for $5million. I'm willing to bet that he had planned for this.
 

AirdropShitposts

Violet Hargrave's Assistant Researcher
kiwifarms.net
I worked at a startup in a WeWork building for a bit, it's not surprising they're shitting money out of their asshole. Every floor had things like beer taps, pool tables, lounges, food, beverages, pretty much aping whatever millennial-daycare shit Google is doing in their offices. In sum, fucking faggots.
Yeah, they also did stuff like this lol
In July 2018, the company restricted employees from expensing meals that contain pork, poultry, or red meat. The firm also announced that it would not provide meat for events at its locations nor allow meat at self-serve food kiosks in its locations. The policy was rolled out to cover employees globally.
 
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