WeWork CEOs tell staff layoffs are coming in leaked email ahead of decision on rescue package
- WeWork's CEOs have once again warned employees to brace for layoffs.
- The CEOs also promised that the team was working on severance packages.
- At the same time, the CEOs told employees the company was still opening new buildings in locations worldwide and hiring community staff.
WeWork's CEOs find themselves in a predicament in which they must promise to shrink and grow at the same time.
In an email sent to WeWork employees last week and seen by Business Insider, co-CEOs Artie Minson and Sebastian Gunningham told employees once again to brace for layoffs, which they said they expected to take place "in the coming weeks" but could be executed as rolling layoffs and take a while to complete.
Business Insider reported earlier this month that executives had warned employees internally about impending cuts, which could hit up to 25% of its workforce.
"As part of refocusing around our core business, we are strategically reorganizing our operating model with the goal of creating a leaner, more efficient organization. As we have mentioned, this will result in a smaller, global workforce ... While we cannot commit to an exact timeline, we expect this exercise to roll out largely by function and over the coming weeks. In certain jurisdictions, the timing may be different," the co-CEOs wrote in the email.
The email also said WeWork was still opening new buildings worldwide, which means it's still hiring support people for those locations, known as "community managers" or "community staff."
"It is important to note that, as part of this reorganization, our Community teams will not be reduced. In fact, they will continue to grow as new buildings come online throughout the world," the CEOs wrote.
WeWork's board has been working feverishly to secure new financing. The company may take a bailout from SoftBank, a deal which would value the company between $7.5 billion and $8 billion, CNBC reported on Monday. A competing proposal from JPMorgan values the company lower. WeWork's board is set to meet on Tuesday to decide on a financing plan.
A potential WeWork bankruptcy has been the subject of much speculation in the press.
The CEOs tried to downplay its financial problems by telling employees that such reports were based on "rumors or speculation originating from outside the company."
The executives also promised that employees who are affected by the cuts would get severance but declined to give details.
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