WeWork said that it will lay off about 2,400 employees globally or about 20% of its workforce as part of a broader effort to cut costs.
"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," the company said in a statement.
"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," the company said.
WeWork's parent has been searching for a CEO who can stabilize the company following the erratic tenure of its co-founder Adam Neumann.
After WeWork's failed attempt at an initial public offering, SoftBank Group Corp. acquired a majority stake in the company last month in a bailout, severing most ties with Neumann.