WeWork to Fire 2,400 of its Employees

Strugging office-sharing start up WeWork has said it is laying off 2,400 employees in an effort to right size its business.

According to CNBC, WeWork is laying off 2,400 employees as it works to cut costs and right-size the business. The job reductions represent 19% of WeWork’s total workforce, which translates to 12,500 employees as of June 30, according to an SEC filing.

A WeWork spokesperson said the cuts were being made as part of the company’s efforts to “create a more efficient organization.”

The company is also trying to 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.”

Marcelo Claure, WeWork’s new executive chairman, warned that layoffs would be on the way back in October.

Claure said in a memo to employees earlier this week that the company will hold an all-hands meeting at 10 a.m. ET on Friday to address the changes slated for the company.