More Than 2,000 WeWork Employees Will Be Laid Off

The co-working space startup WeWork will lay off 2,400 employees which is 19% of its workforce as it works to cut costs, according to CNBC reports.

The massive layoffs come at a time when WeWork is facing larger than ever drop in profits. The company posted a net loss of $1.25 billion in the third quarter this year.

After WeWork’s failed attempt at an initial public offering earlier this year, SoftBank Group Corp - ADR SFTBY bought a majority stake in the company in a bailout.

WeWork also faces a lawsuit from a former employee who alleged there was discrimination on the basis of gender and pregnancy by the company’s former CEO, Adam Neumann.

Most recently WeWork was in discussions with T-Mobile Us Inc TMUS CEO John Legere to take over leadership of the office-sharing company. These discussion were later denied by Legere.

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