Despite free-flowing kombucha, WeWork tenants feel unease

NEW YORK (AP) — WeWork’s stock market fiasco has yet to reverberate much for its more than 600,000 tenants. But beneath the work-and-play cheer, there’s unease as WeWork embarks on a painful restructuring that will include thousands of layoffs as early as this week.

The office-sharing company is slashing the lavish spending that has fueled its breakneck growth while racking up unsustainable losses that ultimately turned off Wall Street investors.

WeWork has said that the layoffs will not include the small “community teams” that work inside the shared offices spaces, and many job cuts will come from sides businesses the company is selling.

The changes have made some tenants nervous about losing certain services. And experts and people in the industry are skeptical that WeWork can achieve meaningful cost reductions without somehow squeezing tenants.

Categories: National News