Finance

WeWork is outsourcing its cleaning staff to real estate giant JLL

WeWork office
WeWork employees asked management for clarity around the outsourcing contracts last week. WeWork
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WeWork's cleaning staff will have another employer in a month. 

The beleaguered office company is outsourcing its US and Canada facilities staff to real estate services giant JLL, per a Monday memo to employees reviewed by Business Insider. 

Starting on December 9, the affected cleaning teams will be part of JLL or one of the company's partners. It's unclear how many staff members are affected by the change.

A representative for WeWork declined to comment, and JLL did not respond to a request for comment. 

Employees advocate for clarity

Every member of the US and Canada cleaning, pantry, and facilities teams will be offered a job with JLL or one of its partners, the memo said. The job changes are effective on December 9. Pay will remain the same, and shifts will not immediately change. 

"When making this decision, we kept our employees' success top of mind. JLL is an industry expert that will help us provide a more consistent experience for our members, strong leadership for our teams, and career development opportunities for the employees that join their organization," the memo said. 

The staff shift, which was announced to employees earlier this month, comes as the office company looks to cut costs in a number of areas following a bailout from SoftBankMajor layoffs are coming, and executives are selling non-core businesses and winding down projects like elementary school WeGrow

Arik Benzino, the US, Canada, and Israel "CWeO" – WeWork's title for country manager – told cleaning and facilities employees in an email earlier this month that WeWork has been looking at outsourcing for nearly a year. 

"We're undertaking it because we believe it will fundamentally improve the experience of our team and our members," he said in the email.

WeWork brought cleaning staff in-house in 2015, which current co-CEO Artie Minson said at the time helped improve the customer experience.  

Now, WeWork employees have been advocating for cleaners, asking chairman Marcelo Claure to "prioritize the wellbeing" of staff, Business Insider earlier reported.

Employees also started a Slack channel to organize and sent a letter to management under the name "The WeWorkers Coalition" last week.

That letter, signed by hundreds, highlighted the need for more communication about the fate of the cleaners, among other asks. 

"We will also need clarity around the contracts our cleaning staff will be required to sign in order to keep their jobs, which are being outsourced to a third party," the email said. 

Get in touch! Contact this reporter via encrypted messaging app Signal at +1 (646) 768-1627 using a non-work phone, email at mmorris@jkmperu.com, or Twitter DM at @MeghanEMorris. (PR pitches by email only, please.) You can also contact Business Insider securely via SecureDrop.

Also read: 

Insiders say WeWork's IT is a patchwork of cheap devices and Band-Aid fixes that will take millions to fix

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SoftBank-backed startup Fair burned through nearly $400 million in 10 months. Insiders reveal how Softbank stepped in and cleaned house in the wake of WeWork.

WeWork's coding boot camp Flatiron School has laid off dozens of employees

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Meghan Morris
Meghan is the bureau chief in Singapore. She oversees business, lifestyle, and news coverage and leads the company's local hiring and editorial strategy.Singapore's bureau works on global news during Asia's daytime. They also collect tales from around the region about entrepreneurs, Big Tech work culture, FIRE, relocation, consumer trends, and AI, focused on people-centric storytelling.Before moving to Singapore in 2024, Meghan worked in NYC and SF as a senior correspondent, writing deeply-reported business investigations. If you have sensitive information, please email her from a nonwork email or reach out on secure messaging app Signal at @MeghanEMorris.1 (PR pitches only by email.)She enjoys speaking about tech, finance, and news on television, at conferences, and on podcasts. Please email for booking.These are some of her favorite features she has written over the years:She spent the 2022-23 academic year doing Columbia University's Knight-Bagehot Fellowship, where she took courses in statistics, advanced corporate finance, family office management, and other classes at Columbia Business School. During her fellowship, she also led MBA seminars on due diligence and brought Pulitzer-winning authors to the business school.Before she joined Business Insider in 2018, she wrote about private equity real estate for three years at the industry's trade magazine, PERE. Meghan holds bachelor's and master's journalism degrees from Northwestern University.