After We Work, a company owned by the startup has reportedly announced that it is laying off 25 per cent of its workforce. According to reports, Meetup, which organizes online groups and facilitate people with similar interests to host events across the globe, is shedding a quarter of its works. Most of the people who would be handed over the pink slip would be from company’s engineering department, the report said. Meetup was acquired by WeWork in 2017 at the reported cost of USD 200 million. According to a statement provide to a website, a representative of the company said that Meetup is undergoing some organisational changes including restructuring across some of the departments. However, the statement didn’t mention any thing clearly about the layoffs.
The news comes in the backdrop of WeWork coming out with a slew of majors off late to give a much needed push to its high-loss business. Recently, it received USD 5 billion loans, a USD 3 billion tender offer and another USD 1.5 billion in equity funding from SoftBank. This is over and above billions already invested by Japanese multinational conglomerate. It now owns around 80 per cent stake in WeWork. WeWork was recently valued at just USD 8 billion; much below of what is was valued previously. WeWork has decided to reduce its business in the wake of its failed initial public offering (IPO). This includes cutting of thousands of jobs across its operations. Some reports even suggest that WeWork is trying to sell Meetup along with several of its subsidiaries.
Meetup was founded by Scott Heiferman and five others in June 2002. Initially, the company generated revenue by charging for venues in exchange of its users to their business. It performed well as it got around 56,000 users within month of its launch. Meanwhile, SoftBank CEO Ken Miyauchi said that WeWork’s Japanese business can become profitable in the coming days. The fate is indistinct but the embattled startup trying everything to stay afloat.