WeWork will close its private school in 2020 as it looks to cut costs

Key Points
  • WeWork is shutting down early education school WeGrow after the current school year concludes, the company confirmed to CNBC.
  • The move represents the company's latest effort to cut costs following its postponed IPO.
A man enter the doors of the 'WeWork' co-operative co-working space in Washington, DC.
Mandel Ngan | AFP | Getty Images

WeWork is shutting down early education school WeGrow later this year, in what represents the latest cost-cutting measure by the struggling office-sharing company. 

The news was first reported by The Huffington Post

A WeWork spokesperson told CNBC that WeGrow will continue to operate through the remainder of the 2019-20 school year. The elementary school is located in New York's Chelsea neighborhood and charges as much as $42,000 per year in tuition.

"As part of the company's efforts to focus on its core business, WeWork has informed the families of WeGrow students that we will not operate WeGrow after this school year," the spokesperson said in a statement. "WeWork and the families of WeGrow students are engaging in discussions with interested parties regarding plans for WeGrow for the following school year."

The move follows additional efforts by WeWork's new co-CEOs, Artie Minson and Sebastian Gunningham, to trim the fat at the company. Since Adam Neumann exited the company in September, the company has put three companies up for sale, including event organizing platform Meetup, office management company Managed by Q and marketing company Conductor, according to The Information

According to a separate report in The Information, WeWork could further reduce costs by slashing up to one-third of the company's workers, or roughly 5,000 employees.

Late last month, WeWork withdrew its IPO filing amid sharp criticism from investors, mounting losses and a dwindling IPO valuation. 

Early WeWork investor Bill Rudin on the company's business model
Early WeWork investor Bill Rudin on the company's business model