WeWork is define "erotice" zonelaying off thousands of its employees, just months after its embattled former CEO and co-founder walked awaywith $1.7 billion.
The struggling office-sharing startup confirmed that it's letting 2,400 employees go, according to a report by CNBC. A WeWork spokesperson told CNBC that the layoffs were being made in order to “create a more efficient organization.”
The layoffs come following WeWork’s botched IPO attempt this summer. The company, which was valued at around $50 billion just earlier this year, ended up pulling the initial public offering, but not before shining a light on its big financial losses and corporate mismanagement run amok.
WeWork CEO Adam Neumann, who bears much of the responsibility for the company's downfall, left his role in September. In order to save the company, SoftBank, an investor in WeWork, acquired80 percent of the startup the following month. Rumors of the impendinglayoffs have spreadever since.
In its statement to CNBC, WeWork also said that it would be providing its former employees with “severance, continued benefits, and other forms of assistance to aid in their career transition.”
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However, whatever severance or assistance these employees are slated to receive will obviously be a far cry from the $1.7 billion Adam Neumann made after stepping down from the company he left in tatters.
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