Wework chief executive Adam Neumann steps down following botched listing
Wework co-founder Adam Neumann is stepping down as chief executive of the shared office business with immediate effect, in the wake of its botched initial public offering (IPO).
Neumann had come under pressure from investors unhappy at the company’s plunging valuations, its undercooked listing plans and his own erratic behaviour.
The company confirmed this evening that he will step down immediately as Wework chief executive, but will continue as non-executive chairman of the We Company’s board.
We Company is also reportedly reducing the voting power of Neumann’s shares from 10:1 to 3:1, further reducing his influence over the company.
Read more:Wework board members consider removing chief executive Adam Neumann
Wework has promoted two of its current executives – Artie Minson and Sebastian Gunningham – to share the chief executive role while the company finds a permanent replacement.
Neumann said: “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.”
Last week the company pulled its planned IPO after a lack of investor enthusiasm.
Neumann has also been criticised for his behaviour, with reports emerging last week he smoked cannabis on a private jet between the US and Israel, while company parties on his watch were reportedly raucous and tequila-fuelled.
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Wework has suffered plummeting valuations over the last year.
In 2018, Morgan Stanley put the company’s valuation as high as $104bn (£83bn), and a private placement in January puts its value at $47bn.
The company’s postponed IPO would have valued the business at $15bn.
Major investors, including Japanese giant Softbank, had reportedly pushed for Neumann’s removal as chief executive in recent weeks.