Eden, on heels of rival acquisition, lays off 40% of staffers
The office-management startup paid $25M for competitor Managed by Q last month
Office-management startup Eden — on the heels of a $25 million acquisition — is laying off nearly half of its staffers.
Eden, which bought Managed by Q from WeWork last month, has let go of 40 percent of its roughly 100 staffers and furloughed 15 percent of them, according to Commercial Observer. The cuts impacted about 75 percent of staff at Managed by Q and 30 percent of staff at Eden.
For Managed by Q, that’s the second set of layoffs in the last month. Before WeWork sold the platform to Eden, it let go of more than 75 employees. Workers who were let go in the latest round of layoffs received a month of severance and a week for every year they worked at either Eden or Managed by Q.
WeWork purchased Managed by Q for $220 million in April 2019, meaning it sold the startup at a 90 percent discount. The flexible-office company has offloaded this and several of its other acquisitions — including Conductor and its stake in The Wing — in the wake of its botched initial public offering attempt last year.
Eden CEO Joe Du Bey said in a statement to CO that the cuts were made to “ensure our company is successful in the long run.”
“These cost reductions include a reduction in non-personnel cost, executive salary cuts, furloughs, and layoffs with severance,” he said. “I am extremely grateful to each of the affected team members for their hard work and contribution to our mission thus far.” [CO] – Eddie Small