CONFIRMED LAYOFF ANNOUNCEMENT THIS WEEKEND - CHAIRMAN SENDS MEMO TO EMPLOYEES

Last week, WeWork had told the investors that their yearly losses were up to 150% and they lost US$1.25 billion on revenue. They are also preparing to lay off at least 4,000 in cost cutting measures to achieve financial stability.

This could be announced this week, reports the New York Times. In a memo sent by Chairman Marcelo Claure to the employees, layoff was confirmed. However, WeWork declined to comment over it.

CNBC got hold of the memo and the full text is given below.

WeWork Team,

This coming week is an important one in the future of WeWork. We are marking our 10th anniversary since WeWork broke ground and started what was nothing short of a reinvention of the way people work, and we are just getting started.

We will need a more efficient, more focused and even more customer-centric organization to grow and continue to help our members change the way they work, and meet their needs. That requires changing WeWork’s team to match our customer-centric priority.

As I said at our last All Company Meeting, in the areas of the business that do not directly support our core business goals, we have to make some necessary job eliminations. This is difficult, especially given the energy and commitment so many have contributed. But it is necessary and we are taking steps to provide support and implement these actions in a way that respects and recognizes our colleagues’ service. Through this process, which will start in earnest this week in the U.S., we are going to eliminate and scale back certain functions and responsibilities, which will increase efficiency and also accountability. These actions will make us stronger and better able to generate even more opportunities over the coming months and years.

In fact, we have been hard at work defining our immediate next steps to shape the future of WeWork, and I am looking forward to sharing those with you directly at the All Company Meeting that we had originally scheduled for tomorrow. On further reflection and out of respect for the people who will be separated this week, we are rescheduling our All Company Meeting to Friday at 10:00 a.m. New York time. I apologize for the late notice and any inconvenience.

Marcelo