- WeWork's cleaning staff was fired on Friday by JLL, the listed real estate company to which the coworking giant outsourced maintenance in December.
- All employees entitled "Community Service Associate" were fired from Business Insider via email.
- They are paid until the end of April and have health insurance, and while JLL pays vacation time, the company does not pay sick time.
- In a December email, a WeWork manager informed the cleaning staff that its benefits were comparable. Now they get much less separation allowance than fired WeWork employees.
- As the corona virus has closed offices worldwide, WeWork's 300 U.S. locations remain open with fewer volunteers.
- You can find more WeWork stories here.
According to an email verified by Business Insider, WeWork's maintenance outsourcing provider has cut some of its cleaning staff, even if buildings remain open during the coronavirus pandemic.
JLL, one of the largest real estate services companies, fired its community service workers over a conference call on Friday, a source aware of the situation, who was not authorized to speak to the media. Business Insider has verified their identity.
It is unclear exactly how many employees were cut. All employees entitled "Community Service Associate" were fired via email. A business-aware source said it wasn't the majority of the 1,000 WeWorkers who were outsourced to JLL in December.
After the past Online job advertisementsCivil service employees ensure "positive experiences of members through high-quality cleaning practices" and are responsible for tasks such as cleaning and maintaining toilets, kitchens and telephone booths, disinfecting telephone handles, brewing coffee and maintaining emergency stairwells.
In New York, only about 5% of WeWork members use their office space, Business Insider reported on Friday. However, according to its website, WeWork has not closed any of its US locations, which explains that since WeWork offers email and other services, some of its members can remain open.
Even so, members of Business Insider have said they are expected to pay the WeWork April rent, even if they are non-essential companies that cannot enter the room.
Smaller companies with flexible space, including Convene and The Wing, have closed and waived members' rent payments.
According to media reports WeWork itself plans to further reduce staff next month. These cuts add to the thousands of jobs the coworking company cut after its IPO.
The layoffs are due to the fact that companies in various industries are struggling with unprecedented declines in business and a massive relocation of employees from home, leading to record unemployment claims.
JLL employees fired on Friday will receive a paycheck and social benefits until the end of the month. You will be paid via email for accrued paid free time, but not for sick days. JLL's separation compensation packages vary by customer, according to a business-aware source.
"We understand that this news comes at a difficult time when people are affected by the global economic slowdown," said Friday's email advising employees of unemployment registration.
In December, WeWork announced that maintenance personnel in the United States and Canada would be outsourced to JLL. This was planned long before the IPO failed. A WeWork manager who left earlier this year informed the employees at the time that the overall performance of the outsourced employees would be comparable, according to a leaked email.
When it comes to severance payments, employee performance varies considerably. WeWork employees who have been made redundant in the past few months have typically received three months of salary and health insurance, not the 13 days of JLL employees' salary and benefits.
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