Chaos at WeWork continues this week with new developments in the company. According to the media reports, the company is likely to slash around 500 jobs.
It can be recalled that the company’s CEO, Adam Neumann has recently stepped down. The company is expected to let go of 350 employees within its corporate division. According to Tech Crunch, the Initial cuts will be within the software engineering, product management, and data science teams.
Another 150 roles may be dissolved as the company looks to sell several assets, including Managed by Q, Teem, SpaceIQ, Conductor and Meetup. The organization has roughly 15,000 employees and expects to make as many as 2,000 layoffs, per reports as the business attempts to cut costs and rewrite its narrative ahead of an eventual debut on the public markets.
WeWork has invested around $2 billion last year, and analysts have projected that on its current path, the company will run through what it has on hand sometime next year.
The company is expected to go public in 2020 at a valuation as low as $10 billion, WeWork is also in negotiations with JPMorgan for a last-minute cash infusion to replace the capital expected from the postponed IPO, as per the report. The company has been working with bankers to reduce the expensive costs of its money-losing operation. The reported layoffs are said to be a part of the bankers’ strategy.