The co-founder of WeWork, Adam Neumann, is stepping down as CEO, according to a report from the New York Times. Neumann is expected to remain chairman of We Company but will relinquish his role as head of the firm due to its delayed IPO.
As the company has made moves to go public, investors grew skeptical after the company reduced its estimate market value to $15 billion USD from the original $47 billion USD valuation it privately sold in January. As such, Neumann was pressured to leave the company from its board members and investors. WeWork has since named two current executives, Sebastian Gunningham and Artie Minson, as co-chief executives.
Although this is the main factor in Neumann stepping down, there have also been several reports about the former CEO that may have also been the cause for his exit. He’d previously been reported to have mingled business finances with his personal money, as well as having fired 300 employees, subsequently, passed around shots of Tequila to his remaining workers, and hosted a concert for DMC from Run-DMC.
It is rumored investors Benchmark and Softbank were the main forces behind Neumann’s exit. Softbank was also responsible for former Uber CEO Travis Kalanick stepping down, which also went public with a bad IPO that remains to have underperforming stock. Nevertheless, stay tuned for updates on the matter.
In other tech news, check out Xiaomi’s new MI Mix Alpha concept phone with an all-over display design.
Breaking: Adam Neumann is expected to step down as WeWork CEO but remain chairman, according to people familiar with the matter https://t.co/9gP12GMLqe
— The Wall Street Journal (@WSJ) September 24, 2019