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WeWork is estimated to terminate 2000 workers as soon as this week



A WeWork logo 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 staff, as soon as this week, the Guardian magazine reported.

WeWork staff told the Guardian that they believe the cuts will not stop there, suggesting that more of the company's 15,000-person workforce could be looted. The information was reported in September that managers and bankers have discussed cuts to one-third of these workers. The embedded startup tries to reverse its assets with painful cost reduction measures.

Employees also told the Guardian that little or no work is being done at the company and new projects have been put on hold.

WeWork declined to comment on the Guardian. Company representatives did not immediately respond to CNBC's request for further comment.

Last month, the startup contacted the plans to be made public. Its long-awaited IPO prospectus in August revealed a huge $ 900 million loss in the first six months of 201

9 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 decreased significantly.

There has also been a showdown between former CEO Adam Neumann and SoftBank chief Masayoshi Son, who has invested billions in the beginning -up. Neumann interrupted last month. It was also reported that SoftBank has clarified a financing package to take control of the company and further sideways Neumann, which is also one of the founders.

WeWork rents office space to start-ups, freelancers and companies by investing in real estate in some of the most expensive markets around the world. It makes money back over time when companies and individuals pay their rents or membership fees.

Read more about Guardian's report on WeWork's plans to loot 2000 staff here.

CNBC's Alex Sherman and Lauren Feiner contributed to this report.


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