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WeWork postpones its plans to lay-off employees due to cash crunch

WeWork has found itself in a dilemma.

With its money running short after it pulled out of its attempt of an IPO, WeWork had been planning to lay off many employees. However with the cash crunch that it is facing it does not have the requisite amount to pay severance to its workers who would be affected as per the experts.

Therefore, WeWork which is expected to run out of cash in the next month if it does not secure a new financing deal has postponed its layoff.

The delay is expected to be short term as the board of WeWork is estimated to meet this Tuesday to consider new offers of funding from JPMorgan and SoftBank. Both the deals are going to involve billions of dollars in cash to prop up the company which is currently struggling.

The new co-CEOs of WeWork had told the employees in the last week that the company had planned to lay thousands of workers off in the coming weeks.

As the reports of the layoffs which were imminent began to do rounds, severance packages had been a topic of active conversation inside the company. The workers had been asking the management these questions recently and had been focusing on what is going to happen with the outstanding shares they had in the company. The employees have also asked whether the severance packages will be inclusive of the stocks which they are owed.

A lot of employees had been paid in shares partially. Others had received the shares of the company when the company had acquired their startups. In a lot of cases these shares which they had received carried a value which was much higher than what it does now.

Robert Espinosa
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EDITOR & AUTHOR At The Industry Research 24

Robert Espinosa is a well-disciplined and punctual personality in The Industry Research 24’s Science division. He has earned respect in his team as well as overall The Industry Research 24 organization by showing his excellent managerial and interpreting abilities. Robert has a strong quality to present each and every news report in an easy-to-understand manner. At the same time, he makes sure that all the content on our Science section can be comprehended by readers of all types. While he pursued a Bachelor of Arts Degree with a Major in Astronomy, he has proved himself as a successful Head of The Industry Research 24’s Science Department from last 2 years.

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