WeWork To Slash 4,000 Jobs As It Seeks To Reverse Misfortunes

Topline: An embattled WeWork will reportedly slash around 30% of its global workforce, or 4,000 jobs, the Financial Times reported, days after it was bailed out by its largest backer, SoftBank, in a deal worth nearly $10 billion.

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• The plan is part of Japanese firm SoftBank's plan to turn the beleaguered business around after it announced the rescue package on Tuesday and increased its stake in the business to 80%.
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• As part of the deal, cofounder Adam Neumann will be reminted a billionaire, according to Forbes, after being paid up to $1 billion to step down from the board of parent firm The We Company, as well as for some of his shares in the firm. He will retain his status as board observer.
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• Some 1,000 of those jobs will affect maintenance staff, with cleaning operations reportedly set to be outsourced, according to the FT.
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• Earlier this week, SoftBank COO Marcelo Claure, now on WeWork's board, warned staff that job cuts were to be expected in a bid to "right-size the business."

Key background: The office-sharing giant has faced a dramatic fall from grace in just a few months. It tumbled from a valuation of $47 billion in January, ahead of its plan to go public, to a valuation of just $8 billion, meaning SoftBank, its biggest shareholder, has invested billions more into the company than it is now worth. The firm's botched IPO triggered Neumann's ousting as CEO amid mounting scrutiny over his leadership and WeWork's business model. The company employs around 12,500 people, according to Reuters.

Further reading:

Masayoshi Son Confirms Softbank Will 'Double Down' On WeWork In $5 Billion Rescue Deal (David Dawkins)

New SoftBank Deal Lets WeWork Cofounder Adam Neumann Walk Away A Billionaire (Jennifer Wang)