- WeWork’s layoffs officially began on Monday, sources say, and hit the corporate technology, HR and security departments.
- Employees are being offered four months severance, regardless of tenure, they say.
- The bulk of the layoffs are still to come, but one employee called this first round a small mercy, as these people will not be required to work long hours executing the layoff only to be laid off themselves at the end.
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The long-awaited layoffs at WeWork began on Monday, multiple sources told Business Insider.
The departments first notified of cuts are units within the corporate technology, HR and security departments, sources say.
The bulk of the layoffs are still expected to happen later this week on Tuesday and Thursday.
One person called this first round a “small mercy” noting that these people will not be asked to put in brutal hours to help the company execute the layoffs, only to be released themselves at the end.
As Recode had reported, employees are being given four months severance, regardless of tenure, sources tell Business Insider, and rank-and-file employees do not expect to receive stock options.
Business Insider previously reported that the company is holding an all-hands on Friday, according to a leaked email message sent by chairman Monday morning and seen by Business Insider. This timing of that meeting indicates the company may be finished with its layoff by then.
The company is expected to layoff thousands of staffers, with news report estimates ranging from 4,000 to 6,000 people. Some portion of those cuts may be due to divestitures as the company attempts to sell non-essential businesses. Others may involve transferring employees to an outside contractor, other reports indicate.
The company employed 12,500 people as of June, it said in its prospectus.
Are you a WeWork insider with insight to share? Contact Julie Bort on Signal at (970) 430-6112 using a non-work phone, or email at jbort@businessinsider.com. Open DMs on Twitter @Julie188. You can also contact Business Insider securely via SecureDrop.
- Now read:
- Read the leaked email from WeWork’s chairman telling employees that layoffs will begin ‘in earnest’ this week
- Insiders say WeWork’s IT is a patchwork of cheap devices and Band-Aid fixes that will take millions to fix
- WeWork’s toxic phone booths were created in-house by its Powered by We business
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