Convene
Convene cofounder and CEO Ryan Simonetti laid off staff as the coronavirus hits the bottom line of the shared spaces industry.
- Convene, the Brookfield-backed shared spaces company, just laid off 150 employees, Business Insider has learned. The company will also furlough an unspecified number of operations staff.
- Four months ago, Convene CEO Ryan Simonetti told Business Insider he planned to add up to 500 employees in 2020 to the company's 900-person staff.
- Convene had raised $260 million in funding, including a $152 million Series D round of funding this summer that included investors ranging from asset management giant Brookfield to private equity magnate Leon Black's family office.
- Earlier this month, the Financial Times reported that WeWork could have another round of layoffs affecting 1,000 staff.
- Visit BI Prime for more stories.
Convene, the event and coworking company backed by Brookfield, laid off nearly 150 employees on Thursday, Business Insider has learned. The company is also furloughing an unspecified number of its operational and front-of-the-house employees.
The New York-based company has 30 locations in the US and London, with about half in New York. Convene had about 900 employees at the end of 2019, CEO Ryan Simonetti told Business Insider in a late November interview. At that point, he said he planned to hire 400-500 new employees this year to keep up with the company's expansion.
A company spokesperson confirmed the layoffs and furloughs, and noted that no additional layoffs are planned. The spokesperson also confirmed that laid off employees will get one month of health insurance, at least one month of severance, and will have indefinite access to EdenHealth, a primary healthcare startup that Convene has offered as an amenity in some of their locations.
"The coronavirus pandemic has had a huge impact on the hospitality and meetings and event industries, and Convene has not been immune to that," Simonetti said in a statement to Business Insider.
"After closing all of our locations, we have had to take the additional measure of saying goodbye to nearly 20% of our team across the company and furloughing others, while ensuring they receive compensation and healthcare coverage for an extended period. This is incredibly difficult for us, but we're taking every measure possible to do right by our employees by providing both severance and healthcare coverage while ensuring we sustain our business for the long-term."
Unlike WeWork, Convene has focused on event space more than office space, offering higher-end amenities and services. As companies cancel meetings and conferences, their spaces may stay empty for some time. The company has raised $260 million in funding, including a $152 million Series D round of funding this summer that included investors ranging from asset management giant Brookfield to private equity magnate Leon Black's family office.
Earlier this month, the Financial Times reported that WeWork could have another round of layoffs affecting 1,000 staff. The venture-backed companies have not weathered an economic downturn, and with their tenants closing offices because of the pandemic in most major cities, they may struggle to keep paying customers.
The only publicly-traded company in the industry, Switzerland-based IWG, has seen its stock plummet 65% in the last month.
Have a tip? Contact this reporter via encrypted messaging app Signal at +1 (646) 768-1627 using a non-work phone, email at mmorris@businessinsider.com, or Twitter DM at @MeghanEMorris. (PR pitches by email only, please.) You can also contact Business Insider securely via SecureDrop.
