NEW YORK, NY -- Real estate company WeWork is laying off 2,400 employees in an effort to cut costs and "right-size" the business.
A WeWork spokesperson said the move is part of an attempt to "create a more efficient organization" and refocus on the core office-sharing business.
“The process began weeks ago in regions around the world and continued this week in the U.S.,” the spokesperson said. “This workforce reduction affects approximately 2,400 employees globally, who will receive severance, continued benefits, and other forms of assistance to aid in their career transition. These are incredibly talented professionals and we are grateful for the important roles they have played in building WeWork over the last decade.”
The cutback of jobs represents 19 percent of the entire workforce at the company, as there are more than 12,000 employees globally. WeWork has struggled for several months after major losses and the forced resignation of WeWork co-founder Adam Neumann.
Three years ago, WeWork laid off 7 percent of its staff and currently the company has around 12,000 employees.