WeWork is slashing almost 20 per cent of its workforce in a restructuring of its money-losing operation after a doomed global stock offering . WeWork said it has laid off 2,400 of its approximately 12,500 employees to “create a more efficient organisation,” the company said in a statement Thursday. The cuts began weeks ago in regions around the world and continued this week in the US, it added, without giving more details. In an email to employees earlier this week, executive chairman Marcelo Claure said jobs would be eliminated in areas that “do not directly support our core business goals,” referring to WeWork’s main office-leasing operations. Additionally, about 1,000 cleaning and maintenance jobs in the US and Canada are being outsourced to another firm. The New York-based company is scaling back the explosive growth of co-working spaces in 122 cities around the world while racking up massive losses that ultimately put off Wall Street investors and doomed its plan for an initial public offering. The stumble also led WeWork to close down some side businesses, and scaling back projects started under the grandiose vision of ousted co-founder Adam Neumann, including a Manhattan junior school and the shared residential offering WeLive. Will WeWork’s woes affect Hong Kong’s overbuilt co-working sector? Claure plans to present a five-year turnaround a plan at company wide meeting Friday amid employee anger over the mismanagement of a start-up company that until recently was valued as high as US$47 billion by private investors. It reported a record US$1.25 billion loss in the third quarter of 2019 on $934 million of revenue. WeWork was saved from financial collapse with a US$9.5 billion bailout from Japanese technology giant SoftBank, which now owns 80 per cent of the company. That bailout reportedly valued WeWork at around US$8 billion, shrinking the value of employee stock options while handing a US$1.7 billion payout to Neumann. Why WeWork’s collapse could be a blessing in disguise for China’s co-working sector In a letter to management last month, a group of WeWork employees said the unravelling of the IPO revealed “deception, exclusion and selfishness playing out at the company’s highest levels.” The group, calling itself the WeWorkers Coalition, asked that laid off employees be fairly compensated for lost equity. The laid off employees will receive severance, continued benefits, and other forms of help to aid in their career transition, WeWork said.