WeWork is slashing jobs and raising prices in New York City
"It takes money to make money," they say: and, it's going to take more of someone else's money to make WeWork profitable any time soon. A lot more of it.
WeWork ($WEWORK) is going to have to pull billions of dollars out of somewhere under Softbank ownership. Already, it has gone through repeated rounds of layoffs, jettisoned non-core assets (and is also still in the process of doing so) and even cut out things like free beer, or, in other places, that fancy fruit-ed water that's so refreshing in the summertime.
Next, it's going to get more out of you, dear shared-space-worker: our first chart tracks "Hot Desk" pricing overtime in New York City, and for WeWork, it's risen almost 6% in the time since former CEO Adam Neumann resigned.
What WeWork isn't increasing is hiring: our next chart tracks the company's hiring, specific to New York City. And while prices are going up, headcount is most certainly not. In New York, which - according to Business Insider - contains the greatest concentration of WeWork properties, it has reduced job postings by 76% from the 2019 peak we can track.
What's noteworthy - especially compared to our final chart - is that WeWork job posting cuts appear to have bottomed out in New York City - but not globally. Lately, WeWork has added job postings back to online listings, so this could be a bottom for jobs in the Big Apple.
Globally, the story is the same with WeWork - it has slashed more than 1,000 job postings, to go along with 2,400 staffers it let go Thursday, November 21. Lately, WeWork has trimmed nearly 75% of job postings from its company globally, as our final chart reflects.
About the Data:
Thinknum tracks companies using the information they post online - jobs, social and web traffic, product sales and app ratings - and creates data sets that measure factors like hiring, revenue and foot traffic. Data sets may not be fully comprehensive (they only account for what is available on the web), but they can be used to gauge performance factors like staffing and sales.