WeWork layoffs are on the horizon and they could result in massive job cuts at the SoftBank (OTCMKTS:SFTBY) subsidiary.
Here’s what to know about the recent WeWork layoff reports.
- Two unnamed sources say that WeWork is preparing to layoff 4,500 people.
- That includes 2,000 to 2,500 people from its office subletting divisions.
- The closing of noncore businesses will also result in another 1,000 layoffs.
- Finally, the final 1,000 layoffs will come from building maintenance personnel.
- However, it’s also possible the WeWork layoffs could go as high as 6,000 employees.
- It’s currently unknown which divisions would see layoffs from this larger number.
- Also, this would have the company almost cutting its workforce in half.
- WeWork currently employees roughly 12,500 people.
- The exact time of the WeWork layoffs is still unknown.
- Despite this, Chairman Marcelo Claure did clarify that they will be coming this week.
The reports of WeWork layoffs come as no real surprise to anyone following news about the company. A rescue from SoftBank earlier this year also included a payout to co-founder and former CEO Adam Neumann.
The rest of the company’s fate was unsure at the time, but there were complaints about Neumann being able to walk away with large sums of money despite allegedly being behind its financial misfortune, reports CNN.
SFTBY stock was up 1.99% on Monday following news about the WeWork layoffs.
As of this writing, William White did not hold a position in any of the aforementioned securities.