WeWork could lay off 4,000 workers under strict Softbank rescue plan

WeWork is reportedly planning to lay off as many as 4,000 people as part of its recovery plans after a failed attempt to go public and a takeover by SoftBank this week.

The office provider is attempting to turn around its fortunes after the Japanese investment conglomerate bailed it out with a $9.5bn (£7.35bn) package.

The job cuts could affect almost 30pc of the company’s worldwide workforce, the Financial Times reported, and roughly 1,000 will be workers such as cleaners, whose roles will be outsourced to an agency.

The company declined to comment on the reports.

WeWork’s fortunes have experienced a dramatic reversal this year. In January the firm, founded by maverick Israeli entrepreneur Adam Neumann, was valued at $47bn by a SoftBank investment, but the rescue deal struck this week valued it at just $8bn.

That deal stands to give Mr Neumann a $1.7bn payout, a sum that has proved controversial among employees unhappy that the founder, who stepped down as chief executive last month, stands to gain considerable wealth despite the company’s straitened circumstances.

His financial management of the firm was already a subject of controversy. Documents published in the run-up to WeWork’s shelved flotation prompted concerns about its ownership structure and path to profitability.

He is also believed to have borrowed more than $700m against his stock in the company and was initially paid $5.9m by his own company for the right to use the word “We”, a deal that was later reversed after scrutiny.