WeWork Saga is continuing with some new reports this week. The reports state that the company might slash around 500 tech roles. Two weeks ago, the chief executive officer and eccentric co-founder named Adam Neuman had stepped down from this co-working business. Now it is expected to lose around 350 employees in the corporate division, reported by The Information. Starting cuts will be in the product management of the software engineering along with the teams of data science.
Roles of another 150 can be dissolved since the company is looking for selling some assets which include Teem, Managed by Q, Conductor, Meetup and SpaceIQ. WeWork is a New York based company which has around 15000 employees and they expect to make the layoffs as many as they can. WeWork revealed their S-1 which was littered with sloppy works and several errors in The Wall Street Journal. However, after losing Neumann, they have decided to delay the initial public offering. Now the former Vice Chairman named Sabastian Gunningham and the former President plus Chief Operating Officer named Artie Minson came in the serve as CEOs.
Now they are expecting to go to the pubic in 2020 with a valuation of $10 billion. They are also in a severe negotiation with JPMorgan to replace the capital which was expected from that postponed IPO. Now the company has been working together with the bankers to decrease those high costs of their money losing operation. Those reported layoffs are now said to be a fraction of banker’s strategy. They were valued previously at $47 billion despite the losses of $1 billion within the six months.