WeWork to lay off 2,400 employees globally

Coffee dispensers sit on a counter in a kitchen area at the Embarcadero WeWork Cos Inc. offices in San Francisco, California, U.S., on Thursday, Oct. 19, 2017. Photographer: Mike Short/Bloomberg

Long-anticipated layoffs at WeWork have begun, part of the struggling office-sharing company’s plan to cut costs after staggering losses.

WeWork said Thursday that the reductions will affect 2,400 employees globally. They will receive severance and continued benefits and other forms of assistance, according to an emailed statement.

The job cuts represent almost 20% of the company’s global workforce, which totaled 12,500 as of June 30. Bonds WeWork issued last year to help fund its expansion fell deeper into distress on Thursday, reaching a record low of 69.7 cents on the dollar, according to Trace bond pricing data.

“We are grateful for the important roles they have played in building WeWork over the last decade,” a company spokesperson said. Staff reductions began weeks ago in regions around the world and continued this week in the U.S.

At the company’s Manhattan headquarters, there was an enhanced security presence on Thursday, according to people with knowledge of the matter.

WeWork, co-founded by former CEO and chairman Adam Neumann, is seeking to stabilize its business and show a path to profitability. The New York-based company scrapped an initial public offering in September, and its valuation has plummeted from $47 billion as recently as January to about $8 billion.

The company reported a net loss of $1.25 billion in the third quarter, eclipsing its sales and more than doubling its loss from the same period last year.

Executive Chairman Marcelo Claure told staff in an email Monday that the process, which will involve eliminating and scaling back some functions and responsibilities, “will make us stronger and better able to generate even more opportunities over the coming months and years.”

Claure said he plans to brief staff about the company’s future on Friday, when he’s expected to tease a five-year plan for WeWork.

Bloomberg

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.