A company press release earlier today confirmed that WeWork CEO and co-founder, Adam Neumann, is reportedly stepping down from his position as head of the young company. Neumann will still retain a role in the business, serving as the non-executive chairman of the board. Vice-chairman Sebastian Gunningham and COO Artie Minson will now serve as co-CEOs for the foreseeable future.
The co-working leasing business previously attained a staggering evaluation of $47 billion, thanks largely to funding from Japanese firm SoftBank. WeWork has announced its intentions for an IPO later this year, but wall-street veterans were not entirely sold on the lofty valuation and it became speculated the IPO valuation may be around $15 billion. Many investors have pointed to the companies concerning loss of $1.9 billion in 2019, which has raised fears about their IPO and delayed it for the time being. WeWork’s impressive growth has been highly praised in Silicon Valley, but now they need to start turning a profit to prove its sustainability on Wall Street.