The stupendously long and expensive con of WeWork , a actual estate subleaser disguised as a workplace technology ecosystem , camecrashing downmonths ago . Of course , the company ’s workers are the one now paying the price .
An estimated 2,400 of WeWork’sapproximately 12,500employees are being laid off today , according toCNBC ’s Annie Palmer — a diminution represent nearly 20 percent of staff . These drastic layoff belie even more severe attempts to deoxidize overhead , though ; as theNew York Timesreported yesterday , “ an extra 1,000 employees will leave as WeWork sell or close down noncore businesses [ … ] just about 1,000 construction maintenance employee will be shift to an extraneous contractor . ” All tell , WeWork is coiffure to shrink by around a third .
attempt to put the company on surer financial footing come , of track , after its oust founder and former CEO Adam Neumann was grant asickening $ 1.7 billionseverance package . This amid realization Neumann had engage in no small amount of questionable financial minutes through the society — buy belongings andleasing them to the business he ran — and other issues of potentialself - dealing . Amid its go wrong IPO , the business concern functionally break up , requiring an additional $ 9.5 billionbailoutfrom its large investor , Softbank .
Photo: Justin Sullivan (Getty)
With WeWork ’s grim hereafter compose on its overvalued , subleasable wall , workers from around the company made an 11th - time of day stratagem to organize for , among loftier asks , a self-respectful goal to their problem . “ Thousands of us will be laid off in the upcoming weeks . But we want our time here to have meant something , ” workerswrotein an open varsity letter . “ In the prompt terminus , we want those being laid off to be render average and reasonable separation terms commensurate with their contributions , including severance pay , continuation of company - paid health insurance and recompense for lost fairness . ”
It ’s not clear what part this alphabetic character may have played in the layoff concretion , but according to a statement from WeWork , two of those three requests were granted .
“ As part of our renew focus on the nucleus WeWork business , and as we have previously deal with employees , the company is make necessary layoff to make a more efficient organization . The process begin weeks ago in regions around the creation and continued this week in the U.S , ” a spokesperson wrote . “ This workforce reduction affects approximately 2,400 employees globally , who will welcome severance , continued benefits , and other forms of assistance to aid in their life history transition . These are fantastically talented professionals and we are grateful for the important roles they have played in build WeWork over the last decade . ”
We ’ve reached out to WeWork for lucidity on the equity recompense , as well as if the company plans to oblige further mass layoffs .
In the Wake Island of every WeWork , Juicero , or Theranos and the merited public comeuppance of their spectacularly arrogant father is a quite a little of even people now left to put their lifespan back together .
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