WeWork to cuit 4, 000 jobs

SoftbBank to force 4, 000 WeWork job cuts WeWork is planning to cut  4, 000 jobs  out of a workforce of 14, 000 as part of  aggressive turnaround plans put in place  by Japan’s SoftBank after it took control of  the co-working business this week. 1, 000 pf the cuts will hit employees such as cleaners, whose role WeWork is looking at moving to an outsourcing company.

WeWork is also seeking to concentrate on three market – the US, Europe  and Japan – and will pull back from other regions including India, China and much of Latin America, it has already begun looking at building closures in parts of its portfolio including China.

 WeWork employees and investors digested a $9,5bn SoftBank rescue plan that helped the group avoid bankruptcy and included terms that will hand up to $1.78bn to Adam Neumann, the company’s co-founder.

The SoftBank-controlled company has set a goal of boosting occupancy  rates in its most important markets to about 90 per cent.

Marcelo Calure the SoftBank executive who has been named executive  chairman of the office space provider  told WeWork staff  that the company would have to be the right size for its business to reach profitability  and that this would include job cuts.

Many WeWork staff hold shares in the company that were issued at a value above the $19.19 per share  at which SoftBank is offering to buy them in a $3bn  tender. The SoftBank offer values WeWork at about $8bn, far below its recent funding rounds, including SoftBank-led round that valued the company at $47bn this year.