- WeWork laid off most of the staff of facilities-management startup Managed by Q as it was selling the business to Managed by Q competitor, Eden.
- WeWork laid off more than 75 employees. Eden offered positions to the roughly 25 remaining employees from its former competitor.
- WeWork first bought Managed by Q for $220 million in April 2019. It sold the company to Eden last week for $25 million.
- Visit Business Insider's homepage for more stories.
WeWork slashed most of the staff of Managed by Q as it was unloading the business at a huge discount to what it paid for it.
More than 75 of Managed by Q's roughly 100 employees were laid off, according to a source with direct knowledge of the layoffs.
The employees will receive severance packages from WeWork that will be in line with the packages the coworking giant provided in its massive November layoffs, a second source familiar with the matter said.
The remaining Managed by Q employees, roughly 25 of them, were offered positions working with Eden, a source with knowledge of Eden's hiring plans said.
Last week, Eden CEO and cofounder Joe DuBey told Business Insider that the company would increase its staff by a third, from about 75 to 100 employees, as a result of the acquisition.
WeWork sold Managed by Q to facilities-management competitor Eden for $25 million last Tuesday, Business Insider previously reported. Eden absorbed Managed by Q's clients and providers in the acquisition.
WeWork had originally purchased Managed by Q for $225 million in April 2019, before WeWork's IPO imploded. WeWork has slashed jobs following its failed public debut and a subsequent bailout from SoftBank, and has been shuttering or selling off non-core assets.
When WeWork first acquired Managed by Q, TechCrunch reported that the startup had 500 employees.
By the time of the sale 11 months later, the company had only 107 employees remaining. According to the first source, most of that drop reflected people who had worked in the now-shuttered Q Services division, Managed by Q's own staff of office cleaners and maintenance employees, the first source said.
Teran wrote a Medium post saying goodbye to the company and its employees Monday morning and linked to a Google Spreadsheet of Managed by Q employees looking for new roles.
A number of Managed By Q employees were also affected by WeWork's November layoffs, according to the first source. The remaining employees operated Managed by Q's Services Marketplace, which connected office managers to office cleaning and maintenance services.
WeWork had initially been considering a sale to Managed By Q co-founder Dan Teran, but a Bloomberg report two weeks ago said that Eden's offer was higher than Teran could raise. WeWork's new CEO, Sandeep Mathrani, joined the company last month.
