WeWork CEOs tell staff layoffs are coming in leaked email ahead of decision on rescue package

WeWork

WeWork front desk

• WeWork's CEOs have once again warned employees to brace to layoffs.
• The CEOs also promised that the team was working on severance packages.
• At the same time, the CEOs told employees it was still opening new buildings in locations worldwide and hiring community staff.

WeWork's CEOs find themselves in a predicament where they must promise to shrink and grow at the same time.

In an email sent to WeWork employees last week and seen by Business Insider, co-CEOs Artie Minson and Sebastian Gunningham told employees once again to brace for layoffs, which they say they expect to take place "in the coming weeks" but could be executed as rolling layoffs and take a while to complete.

Complimentary Tech Event

Transform talent with learning that works

Capability development is critical for businesses who want to push the envelope of innovation.Discover how business leaders are strategizing around building talent capabilities and empowering employee transformation.Know More

As BI has previously reported, executives had warned employees internally about impending cuts in early October which could hit up to 25% of its workforce.

"As part of refocusing around our core business, we are strategically reorganizing our operating model with the goal of creating a leaner, more efficient organization. As we have mentioned, this will result in a smaller, global workforce ... While we cannot commit to an exact timeline, we expect this exercise to roll out largely by function and over the coming weeks. In certain jurisdictions, the timing may be different," they wrote.

The email also said that WeWork is still opening new buildings worldwide which means it's still hiring support people for those locations, known as "community managers" or "community staff."

"It is important to note that, as part of this reorganization, our Community teams will not be reduced. In fact, they will continue to grow as new buildings come online throughout the world," the CEOs wrote.

WeWork's board has been working feverishly to secure new financing. WeWork may take a bailout from SoftBank, a deal which will value the company between $7.5 billion and $8 billion, CNBC reported on Monday. A competing proposal from JPMorgan values the company lower. WeWork's board is set to meet Tuesday to decide on a financing plan.

Read: WeWork's board talked to more than 75 financing sources in a week, the new CEOs told employees in a leaked email

A potential WeWork bankruptcy has been much speculated about in the press.

The CEOs tried to downplay its financial problems as reported in the press by telling employees that such reports were based on "rumors or speculation originating from outside the company."

The executives also promised that employees who are impacted by the cuts will get severance, but declined to give details.

Are you a WeWork insider with insight to share? Contact Julie Bort on Signal at (970) 430-6112 using a non-work phone, or email at jbort@businessinsider.com. Open DMs on Twitter @Julie188. You can also contact Business Insider securely via SecureDrop.