WeWork confirmed layoffs at an internal meeting but still hasn’t said how many or when

WeWork, the coworking unicorn that was once one of the most valuable startups in the world but has now all but imploded, held an all-hands staff meeting at its New York headquarters on Wednesday during which it tried to calm anxious employees who are awaiting substantial layoffs. The meeting is the first all-hands led by…

WeWork confirmed layoffs at an internal meeting but still hasn’t said how many or when

WeWork, the coworking unicorn that was once one of the most valuable startups in the world but has now all but imploded, held an all-hands staff meeting at its New York headquarters on Wednesday during which it tried to calm anxious employees who are awaiting substantial layoffs.
The meeting is the first all-hands led by the company’s new executive chair, Marcelo Claure, who is the chief operating officer of SoftBank. According to audio obtained by Recode, in the meeting, Claure said that layoffs will happen to “right-size the business.” He did not, however, offer further details about the cuts.
“Are there going to be layoffs? Yes. How many? I don’t know. It’s day one,” said Claure, who is positioning himself as a steady leader amid the chaos. “But I will guarantee you that whoever leaves is going to leave with dignity.”
On Wednesday, SoftBank, which is WeWork’s largest investor, took control of the company in a rescue funding deal. In a move that angered many employees, the deal gave $1.7 billion to WeWork’s controversial founder and former CEO, Adam Neumann, who drove the company to its current state of distress. Reportedly, the company needed SoftBank’s last-minute funding to afford severance packages for the 2,000 or more employees it plans to lay off from its 15,000-person workforce.
“My goal is to be part of one of the most amazing comebacks in history,” Claure said in his opening remarks. He later told employees, “We’re betting SoftBank, betting our reputation, betting everything we have that this is going to be a success story.”
In several parts of his speech and during Q&A responses, Claure defended the “magic” of WeWork amid its detractors in the press and investor markets. He said that after “many endless nights” of internal debate with billionaire SoftBank CEO Ma
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