A WeWork logo is seen at a WeWork office in San Francisco, September 30, 2019.
Kate Munsch | Reuters
WeWork is expected to lay off at least 2,000 people, about 13% of its staff, as soon as this week, the Guardian newspaper reported.
WeWork staff told the Guardian that they believe the cuts will not stop there, suggesting more of the company’s 15,000 person workforce could be sacked. The Information reported in September that executives and bankers have discussed cutting up to a third of those workers. The embattled start-up is attempting to turn its fortunes around with painful cost reduction measures.
Employees also told the Guardian that little to no work is getting done at the company and new projects have been put on hold.
WeWork declined to comment to the Guardian. Representatives for the company did not immediately respond to CNBC’s request for additional comment.
Last month, the start-up pulled the plug on plans to go public. Its much-anticipated IPO prospectus in August revealed a massive $900 million loss in the first six months of 2019 and drew skepticism over its corporate governance. WeWork had a private market valuation of about $47 billion but its potential value in the public market had been slashed significantly.
There has also been a showdown between former CEO Adam Neumann and SoftBank chief Masayoshi Son, who has invested billions into the start-up. Neumann stepped down last month. It was also reported that SoftBank has readied a financing package to take control of the company and further sideline Neumann, who is also a co-founder.
WeWork rents out office spaces to start-ups, freelancers and enterprises by investing in real estate in some of the most expensive markets around the world. It makes money back over time as companies and individuals pay their rent or membership fees.
— CNBC’s Alex Sherman and Lauren Feiner contributed to this report.