2,400 WeWork Employees Didn’t Deserve This

The stupendously long and expensive con of WeWork, a real estate subleaser disguised as a workplace technology ecosystem, came crashing down months ago. Of course, the company’s workers are the ones now paying the price.An estimated 2,400 of WeWork’s approximately 12,500 employees are being laid off today, according to CNBC’s Annie Palmer—a reduction representing nearly…

2,400 WeWork Employees Didn’t Deserve This

The stupendously long and expensive con of WeWork, a real estate subleaser disguised as a workplace technology ecosystem, came crashing down months ago. Of course, the company’s workers are the ones now paying the price.An estimated 2,400 of WeWork’s approximately 12,500 employees are being laid off today, according to CNBC’s Annie Palmer—a reduction representing nearly 20 percent of staff. These drastic layoffs belie even more severe attempts to reduce overhead, though; as the New York Times reported yesterday, “an additional 1,000 employees will leave as WeWork sells or closes down noncore businesses […] roughly 1,000 building maintenance employees will be transferred to an outside contractor.” All told, WeWork is set to shrink by around a third. Attempts to put the company on surer financial footing come, of course, after its ousted founder and former CEO Adam Neumann was awarded a sickening $1.7 billion severance package. This amid realizations Neumann had engaged in no small amount of questionable financial transactions through the company—buying properties and leasing
Read More From Publisher