WEWORK IS LAYING OFF ABOUT 2,400 WORKERS GLOBALLY AS PART OF A PART OF A BROADER EFFORT TO CUT COSTS AND FIND A WAY FORWARD IN THE PATH OF A FAILED INITIAL PUBLIC OFFERING ATTEMPT
(CNN) – Wework is laying off around 2,400 workers globally, as part of a part of a broader effort to cut costs.
The total doesn’t include about 1,000 cleaning and building maintenance workers whose jobs are being outsourced; impacted employees were given a chance to apply for new jobs at an outsourcing partner.
A source says those working at the company for four years or more are getting six months severance; those there for less time were given at least four months severance.
The possibility of sweeping layoffs has hung over the company for much of the past two months.
Some reports suggested 4,000 people could be impacted by the layoffs.
During that time, Wework’s co-founder and CEO Adam Neumann was forced to step down and the company took a multi billion-dollar bailout from Softbank.
As part of the deal, Neumann got a massive payout despite the company’s challenges.