Wework plans to lay off one-third of its technical team. Is it really unnecessary or can't afford it?

According to foreign media reports, informed sources revealed that WeWork is expected to lay off 500 people in the technical department due to layoffs and business sales, which will employ about 65,438+0,500 software engineers, product managers and data scientists. You can turn to the business model that makes it a technology company. This move may further weaken WeWork's position as a technology company in the real estate industry.

The company plans to lay off a total of 1500 to 2000 people, but the layoffs may be carried out in stages, and the specific plan is still under discussion. The person familiar with the matter said that other sectors that may be affected include marketing, real estate, recruitment and design. People familiar with the matter said that the company currently has 1.35 million to 1.45 million employees. A WeWork spokesperson declined to comment.

WeWork has been in a state of chaos in recent weeks. Adam Neumann, CEO of the company, was forced to resign from the top position last month. Due to weak investor demand and concerns about the company's profit potential, the company abandoned its IPO plan.

The company mentioned "technology" nearly 100 times in IPO documents. Technology-centered WeWork products include applications that allow customers to send messages to each other and software that helps customers set up offices.

At present, with the constant turmoil of the company, the attention to technology has become more uncertain. Streamlining the technology department will make the company save more money, because it can be immediate-the salary and stock distribution of employees in this department are often higher than those in other departments.

Employees are worried about how technology will adapt to future development. Artie Minson, co-CEO, said last week that the company would restore "the foundation of our core WeWork business". Executives revealed that they still plan to open hundreds of new offices this quarter.

At an employee meeting last week, an employee asked WeWork if it was shifting its focus from technology to other aspects. According to the recording of the meeting reviewed by foreign media, the answer of Sebastian Gunningham, another co-CEO of WeWork, is uncertain. So there are many reasons for this decision, not only can't afford it or don't need to summarize it.