WeWork Puts UK And European Staff On Notice Of Job Cuts

WeWork has told staff in its EMEA business that the company will be making job cuts in the near future, as it looks to cuts costs and roll back expansion plans.

A formal consultation process about redundancies will begin this week, according to Bloomberg. The consultation will not include the community managers who run WeWork’s buildings.

“WeWork is in conversation with employees in EMEA as we make changes to our operating model and workforce in light of our refocused strategy,” the company said in a statement. “Leadership has been diligent in its decision making, and we are committed to treating our colleagues fairly and with respect.”

WeWork International Limited, one of the company’s international subsidiaries, has 440 staff, not including its community managers, Bloomberg said.

WeWork is cutting costs and scaling back its huge expansion plans because it was running out of money. After it failed to secure new funds through an initial public offering in September, major investor SoftBank had to step in with a rescue package that totalled $9.5B. The cost cutting is aimed at putting the company on a more stable financial footing — it lost $700M in the first half of 2019.

WeWork is reviewing its London expansion plans, another sign it is looking to reduce its cost base. The company, which leases about 4M SF in the UK capital, is assessing whether to push ahead with 28 potential new deals, Bloomberg said.

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