Wework set to sack 2,000 employees as bosses weigh up rescue plans
Wework is said to be preparing as many as 2,000 layoffs in the coming weeks as its new bosses battle to keep the company afloat.
The troubled co-working giant is looking to cut roughly 13 per cent of its global workforce starting as early as this week, the Guardian reported.
Read more: Softbank seeks control of Wework via financing package
The mass layoffs come after Wework was forced to ditch its highly-anticipated initial public offering (IPO) as investors baulked at the firm’s huge losses.
Co-founder and chief executive Adam Neumann was forced to step down in the wake of the botched listing.
New bosses Sebastian Gunningham and Artie Minson are now expected to shut branches and offload non-core parts of the business as they look to cut costs.
Wework is also said to be pursuing private funding options to ensure the company does not run out of cash.
The flexible workspace giant is currently leaning towards a $5bn (£3.9bn) refinancing package from JP Morgan, Bloomberg reported.
Reports of the risky refinancing plans sent Wework bonds spiralling to fresh lows.
Earlier this week it emerged Softbank, which has already invested more than $10bn in Wework, is looking to take a controlling stake in the company.
Read more: Wework’s European operational losses skyrocket amid London boom
However, this option is reportedly being viewed as a “back-up plan”, as it would lead to a dilution of employees’ holdings.
Wework declined to comment on the job cuts or its funding options.
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