WeWork founder out as CEO as company looks to win back investors

Adam Neumann will stay on as non-executive chairman after damning report on his eccentric management style and questions over company’s profitability ahead of expected IPO

By ToI Staff and AP 24 September 2019, 11:01 pm

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Adam Neumann, co-founder and CEO of WeWork, attends the opening bell ceremony at Nasdaq, in New York, January 16, 2018. (AP Photo/Mark Lennihan, File)

WeWork founder Adam Neumann is stepping down as CEO of the embattled company following a damning report on his unorthodox management style and amid questions over the company’s valuation.

The shared office space company is heading toward an IPO, but has hit serious road bumps in recent weeks. It was originally valued at $47 billion, but that figure has plummeted to some $15 billion as investors have opened the company’s books and raised questions about how it is run.

The New York-based office-sharing company said Neumann will remain on its board as non-executive chairman. WeWork’s Artie Minson, formerly co-president and chief financial officer, and Sebastian Gunningham, formerly vice chairman, will become joint CEOs of the company.

Skepticism about WeWork’s business model has mounted in recent weeks after it delayed a planned initial public offering. The company’s revenue has risen sharply, reaching $1.8 billion in 2018. But its losses have mounted almost as quickly, climbing to $1.6 billion last year.

A WeWork office in New York City, July 19, 2019. (TIMOTHY A. CLARY/AFP)

WeWork has office spaces in 111 cities worldwide.

A Wall Street Journal report over the weekend portrayed Neumann and his wife as eccentric executives who made rash decisions. According to the profile, Neumann has plans to become prime minister of Israel and the world’s first trillionaire.

The 40-year-old, 6-foot-5 Israeli grew up on a kibbutz and in the US and served as an officer in the Israeli navy.