After a whirlwind few weeks during which he cancelled a long-expected IPO after media reports suggested that equity market investors believed WeWork's valuation to be closer top $10 billion than the Soft Bank-backed $47 billion announced earlier this year, WeWork's "charismatic" but "unorthodox" CEO Adam Neumann is stepping down from the CEO role. This follows earlier reports that said he was considering it.
Also, the Information his rereported earlier this afternoon that WeWork's bankers discussed ways to cut costs with the company, which centered around layoffs of his CEO ate some 5,000 employees one-third of executives. The dominant blind.
Neumann will remain chairman of the We Company after the transition, while two current executives, Sebastian Gunningham and Artie Minson, will take his place as interim co-chief executives, per the NYT. properly you might ).
The final decision was made during a boardroom call on Tuesday. The board meeting ended around 1:00 pm ET.
Of course, whether Neumann’s departure as CEO will be enough to bolster interest in We’s shares remains to be seen. Investors have also expressed doubts about the country's business model, which seems to rely on VC money to stay afloat (so, they that goal in mind part-fixed pi hix far this year, WeWork has burned through $2 for every $1 it made in revenue.
In an interesting change in paradigm for the market - which is suddenly no longer willing to simply trust the 'gurus' who run the world's most powerful companies. Uber's scandal-stained founder Travis Kalanick was ousted months before that company's disastrous offering.
Then again, unfotunately for Neumann, "you can't evolve peoples' consciousness" without breaking a few eggs. Maybe he'll make it right by throwing an all-out bash in the office for those who were let go, like he did last time.