WeWork’s coding boot camp, Flatiron School, laid off dozens of employees on Thursday in the latest cuts to companies in WeWork’s portfolio after the coworking company’s failed IPO.
Around 80 people were given notice on Thursday, according to one source familiar with the cuts.
WeWork acquired the Flatiron School for $28 million in 2017.
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WeWork’s coding boot camp, Flatiron School, laid off dozens of employees on Thursday as the coworking giant slashes costs following its failed IPO.
Less than 75 people were given notice on Thursday, according to one source familiar with the cuts. WeWork acquired the Flatiron School for $28 million in 2017.
One employee who got laid off on Thursday said the cuts were framed as a restructuring, and the employees at Flatiron School’s headquarters were hit the hardest. Employees were told that the company is focusing on profitability in 2020, though it spent 2019 focusing on scaling, the person said, and had recently hired a bunch of new people and added new teams.
“Delivering a transformative educational experience is core to Flatiron School’s mission. While we have expanded our campus footprint over the past two years, our focus going forward is on optimizing our impact within existing markets,” a Flatiron School spokeswoman told Business Insider. “Today, we made some organizational changes to align with this strategy.”
Layoffs at Flatiron School come after weeks of financial chaos and uncertainty at WeWork, which withdrew its plans for an IPO in late September following controversy over cofounder and CEO Adam Neumann and the lack of corporate governance outlined in the company’s IPO registration.
The company announced on October 11 that its private elementary school WeGrow would close its doors at the end of the school year.
Other companies under the We Company banner, such as its living space WeLive, have cancelled planned projects in response to the turmoil.
SEE ALSO: WeWork’s school is closing at the end of the academic year as the company ditches passion projects to stem its huge losses
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Source:: Business Insider