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| WeWork Jongno Tower (WeWork Korea) |
It is confirmed that the shared office company WeWork Korea has received a request for retirement from all employees of WeWork Korea, raising concerns over whether it has entered the procedure for withdrawing the Korean business.
According to industry insiders, WeWork Korea started receiving applications for retirement last week, and some employees said they were already being offered or considering a job change to another shared office company.
Last year, WeWork Korea reduced the number of community managers in its Korean branches as part of its headquarters-level restructuring.
As the successive manpower reduction continued, another official said, “It is understood that we have a willingness to withdraw from Korea from the headquarters of WeWork,” and there was a conflict between the headquarters that wanted to withdraw and WeWork Korea trying to maintain the business while arranging the deficit branches. Said there is.
In response, WeWork Korea denied that “it is not true at all,” but said, “There is no official position” regarding the application for retirement.
WeWork Korea operates a total of 20 branches in Korea, 18 in Seoul and 2 in Busan, and there are 12 branches in Gangnam, Seoul.
As concerns over the increase in the vacancy rate in the aftermath of the corona increased, some branches, such as the WeWork Jongno Tower branch, entered into renegotiation of lease agreements with the landlord, and it is known that they are considering transferring the lease agreement to another shared office company.
WeWork’s headquarters are facing difficulties in management, including the resignation of former CEO Adam Neumann as the IPO collapsed amid growing concerns over profitability last year.
As part of the restructuring, more than 2,400 employees, which account for 20 percent of the total employees, were laid off, and Softbank, the largest shareholder, withdrew its plan to purchase shares worth about $3 billion (3.7 trillion won) and is struggling with global management. Is a state of increased uncertainty.
In the aftermath, the position of WeWork Korea’s representative was also vacant since last October, but recently, Jeon Jeong-ju, former Delivery Hero Korea Chief Strategy Officer (CSO) was appointed as the new General Manager, filling the gap.
An official from WeWork Korea said, “The domestic business is stabilizing as global and local leadership has been established.”
Reporter Sohn Ji-hyung of the Korea Herald (consnow@heraldcorp.com)
