Wework plans to axe up to 4,000 jobs
Wework is planning to axe up to 4,000 jobs as Softbank launches a turnaround plan after taking control of the business earlier this week.
The redundancies will reduce Wework’s global workforce of 14,000 people by just under 30 per cent.
Read more: Softbank takes control of Wework
Wework is seeking to move its cleaning operation to an outsourcing company, which will affect 1,000 roles at the company.
The co-working business is also planning to withdraw from regions including China, India and much of Latin America as it focuses on three key markets – the US, Europe and Japan- the Financial Times reported.
Earlier today it was reported that Softbank’s rescue plan included terms that could hand Wework co-founder Adam Neumann up to $1.7bn.
In a memo Marcelo Claure, Wework’s new executive chairman, told staff: “Yes, there will be lay-offs – I don’t know how many – and yes, we have to right-size the business to achieve positive free cash flow and profitability”.
Read more: Wework sells former CEO Adam Neumann’s $60m private jet
He added: “But I promise you that those that leave us will be treated with respect, dignity and fairness.
“And for those that stay, we will ensure everyone is aligned and shares in future value creation”.