WeWork joins the list of companies laying off employees with their latest announcement of firing 20% of their workforce. The decision is made to reduce its operational costs and have a sustainable growth for the company. The co-working firm had a workforce of about 500 and this decision will impact about 100 out of the lot.
The new team and organization structure will come effective in June. The company said in a statement that they will keep the notice period of their employees into consideration and offer severance package accordingly. The firm has also decided to continue the medical insurances until the end of this year and will be providing its co-working spaces for free.
The company has restructured its organization to fulfill its aims to be profitable by early 2021. Karan Virwani, CEO of WeWork stated that any step that affects their members is difficult but it was necessary in order to help the company in near future.
WeWork is currently operating in 34 establishments across Delhi-NCR, Bangalore, Mumbai, Pune and Hyderabad. Co-working spaces caught up pace in last couple of years but the lockdown had an extremely negative impact on their business.