WeWork to delay layoffs as it is 'unable to pay severances'
Workspace provider could run out of cash by next month
Workspace provider WeWork is delaying mass layoffs, as the company doesn't have enough cash for severance pay, The Wall Street Journal has learnt.
Last week the company announced plans to cut 2,000 jobs to cope with the massive losses it faces due to its cancelled IPO. That represents 6 per cent of the company's total staff.
However, the move is now on hold as the company is running out of cash due to the failed IPO. In the event that WeWork does not accept finance packaging from possible partners, it could run out of funds by next month.
As sources told Business Insider, the employees are currently trying to find out what will happen to their shares in WeWork due to the listing cancellation, as many of them were partially paid in shares.
FURTHER READING: Softbank rescue bid