2,000 staff to be laid off as WeWork faces collapse

Josh Hall's picture

WeWork will lay off at least 2,000 staff in the coming week, with thousands more job losses expected to follow.

The office rental company has endured a precipitous collapse following investor concerns over its management and business model.

It abandoned its planned IPO last month after its valuation was almost halved.

The company had been valued as high as $47 billion, making it America's highest-valued private firm.

But investors grew suspicious of the company's model, which involves taking long leases on office buildings and then selling shorter, more flexible tenancies to business tenants.

Meanwhile the company's founder, Adam Neumann, faced a raft of criticisms including accusations over the involvement of his wife.

Rebekah Paltrow Newman, cousin of actress Gwyneth, had been understood to have sway over hiring and firing decisions in her role as "strategic thought partner".

Neumann cashed out $700 million of his own shares before the company's valuation was cut.

It is now understood that the bulk of WeWork's employees could be laid off as the company faces collapse.

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