Adam Neumann, the founder and CEO of shared workspace real estate company WeWork has stepped down. However, he will remain chairman of WeWork's parent company We.
The Israeli entrepreneur has decided to quit following pressure from the board and revelations in the "Wall Street Journal" about his lifestyle and behavior. "The Wall Street Journal" reported that Japan's Softbank, one of the largest investors in WeWork, led the efforts to oust Neumann.
In his official resignation statement, Neumann said, "As co-founder of WeWork, I am so proud of this team and the incredible company that we have built over the last decade. Our global platform now spans 111 cities in 29 countries, serving more than 527,000 members each day. While our business has never been stronger, in recent weeks, the scrutiny directed toward me has become a significant distraction, and I have decided that it is in the best interest of the company to step down as chief executive. Thank you to my colleagues, our members, our landlord partners, and our investors for continuing to believe in this great business."
Neumann has also agreed to forego his majority voting rights. He is the company's largest shareholder with 115 million shares.
While WeWork has been developed through Neumann's vision and endeavor, he has come under pressure since filing for an IPO on Wall Street. The company's financial results revealed huge losses and corporate governance problems. Moreover the company was required to repeatedly cut its valuation, which began at $45 billion and has since been reduced to $20 billion and is likely to be reduced further.
Published by Globes, Israel business news - en.globes.co.il - on September 25, 2019
© Copyright of Globes Publisher Itonut (1983) Ltd. 2019