WeWork Job Cuts in US Start this Week

WeWork is set to announce job cuts later this week in the US. The cuts are part of its efforts to financially stabilize its struggling business.

The company has been in a predicament since it canceled plans for an initial public offering (IPO) on September 30.

WeWork must now deal with a major restructuring in a bid to resolve its financial issues.

Data from a US fintech firm showed WeWork’s 2025 bond has fallen sharply in the past week, reaching 16.057% on Monday.

The company is expected to dismiss people in areas that do not support its primary business goals. This information came from The We Company’s newly appointed Executive Chairman, Marcelo Claure.

Claure stated that the process will make them stronger and able to generate even more opportunities over the years.

News of WeWork’s job cuts of at least 4,000 people came out on Sunday.

WeWork needs a more efficient and more customer-centric organization to grow, Claure said. He also added that they are going to eliminate and scale back certain functions and responsibilities.

A presentation shown to bondholders on October 11 suggested jobs in the administrative sector, venture capital division, and growth-related functions would be included in the layoffs.

The decision came after the New York-based group canceled its IPO registration in September. Moreover, the cancellation came after investors expressed concern over its cash crunch, business model, and corporate governance.

Claure plans to inform the staff regarding the company’s future during Friday’s meeting.

The recently named executive chairman is due to brief the team that day about his five-year plan for WeWork.

NYAG Investigates WeWork amid Job Cuts

WeWork on Monday has been reportedly placed under scrutiny by the New York State Attorney General. This puts the company into more trouble amid its job cut preparations.

A spokeswoman for the company confirmed that they have received an inquiry from the office of the NYAG, Letitia Jame. As a result, they are cooperating in the matter.

A spokeswoman for NYAG declined to provide details concerning the investigation.

The issue came days after the news of the US Securities and Exchange Commission’s (SEC) inquiry into the company. This inquiry involved possible violations of rules related to its abandoned IPO, surfaced.

The company did not comment on the report.

Among the concerns the NYAG is looking into is whether founder and former chief executive Adam Neumann engaged in self-dealing.

Neumann purchased properties, which he then leased back to WeWork, borrowed against his share in the group.

He has also planned to charge the company nearly $6 million for using his trademark of the word We. This comes after the group’s rebranding as The We Company.

Neumann later asked WeWork to terminate the arrangement and agreed to return the money.

This was not the first time the NYAG has put WeWork under investigation, the report noted.

The company had to withdraw its policy that called for its employees to sign non-competence contracts after settling a deal with the attorney general in 2018.