WeWork, the coworking company that was among the world’s most valuable startups until it postponed its IPO and ran into serious problems this year, is reportedly planning to layoff thousands of workers this week. According to the New York Times, the company is preparing to cut at least 4,000 jobs in its fight against escalating losses.
The news comes days after WeWork reported a record loss of $1.25 billion for the third quarter of 2019, outstripping its revenue for the quarter by nearly $300 million. As our chart illustrates, the company racked up nearly $5 billion in losses since 2016, a fact that ultimately led to the cancellation of its planned IPO and saw its valuation slashed to $4.9 billion, down from nearly $50 billion at the beginning of the year.
It remains to be seen whether WeWork can recover from what turns out to be a disastrous year for the coworking company. For now it seems as though its business model isn’t really working.