MULTI-NATIONAL office giant IWG is to make up to 170 UK staff redundant as at least one of its Scottish sites closes, The National can reveal.
The Luxembourg-based group, which was founded by billionaire Mark Dixon, leases serviced offices, co-working spaces, business lounges, virtual offices, meeting rooms and video teleconference services to customers around the world.
Formerly known as Regus, it incorporates brands including Spaces and HQ and operates 16 sites in Scotland.
Clients include medics, solicitors and cab hire services.
At least one of IWG’s sites – on Glasgow’s prestigious Buchanan Street – has now closed as it makes cuts to its UK operations in a move which will see up to 170 redundancies.
The news comes three months after IWG was accused of failing to protect staff health at the outset of lockdown by keeping its facilities open.
The company said those remaining at their desks had volunteered to do so, but hundreds of people added their names to a petition on the coworker.co.uk platform calling for all centres to be closed – with access retained for any clients in vital roles – saying IWG staff were “not key workers” and should not be expected to travel to work.
A spokesperson for IWG told The National it had “decided not to comment on this one” while the redundancy consultation period continues.
The company said its Buchanan Street lease had come to its end and did not answer further questions about any other Scottish closures or job losses.
However, it is understood that at least 120 posts will go.
One employee told The National around 10 sites were shutting and hit out at the job cuts move, saying: “Most people are on furlough. The company has taken government support where smaller businesses couldn’t, and even though it’s saved those wages it is going to make lots of people redundant.
“The people who weren’t furloughed have still been turning up every day – even in Scotland, when the Scottish Government said only key workers should be leaving their homes.
“The company calls them ‘volunteers’, but people have felt under pressure to do that.
“To make redundancies at this time, after all that, is quite brutal.”
In March, IWG told The National it was supporting “millions of workers”. A company spokesperson said: “We provide many services to help our customers work efficiently and we are keeping these running using small groups of dedicated volunteers from our team members.
“We have a large number of customers that are providing numerous critical services during the current crisis, including the ambulance service, doctors and medical research companies, along with over 250,000 people that we are supporting working at home.
“We have seen enormous growth in support needed in recent weeks, particularly for our mail handling, internet, and technology services with so many people working remotely.”
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