WeWork laying off 2,400 worldwide in cost-cutting move

WeWork laying off 2,400 worldwide in cost-cutting move
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Office-sharing company WeWork announced Thursday it is laying off about 2,400 employees worldwide, as the company looks to cut costs and stabilize its business model.

Layoffs had been expected following Japanese technology investment company SoftBank's announcement that it would extend a $9.5 billion lifeline to WeWork that will lead to SoftBank owning nearly 80 percent of the company's shares.

"As part of our renewed focus on the core WeWork business, and as we have previously shared with employees, the company is making necessary layoffs to create a more efficient organization,” a WeWork spokesperson said in a statement provided to The Hill. “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."

As of June 30, the New York-based company had 12,500 employees.

The layoffs began around the world weeks ago, but started this week in the U.S., WeWork said.

In January, WeWork was valued at $47 billion and had planned an initial public offering (IPO) for September. The IPO was postponed after CEO and co-founder Adam Neumann resigned amid growing losses.