Adam Neumann Steps Down As WeWork CEO, Will Remain Chairman

WeWork co-founder Adam Neumann is reportedly stepping down as CEO and will transition to the role of nonexecutive chairman.

What Happened

Neumann faced pressure to step down as CEO from board members and investors over the past few days and will be replaced with two executives, The New York Times reported. 

Sebastian Gunningham and Artie Minson will serve as interim co-CEOs while the company searches for a permanent replacement.

The decision came after a lengthy board meeting Tuesday and followed Neumann's discussions with JPMorgan Chase & Co. JPM CEO Jamie Dimon and Benchmark Capital's Bruce Dunlevie, who is also a WeWork director.

Why It's Important

Neumann's charismatic leadership style came with the downside of unpredictability, the Times said.

The executive controlled a large portion of the company its dual class share structure.

That will change, the Times said: each of Neumann's shares will now have three votes, down from 20 previously, the newspaper said, citing two sources who were briefed on the change. 

Concerns also surrounded some of the deals the company reached with Neumann and entities he controlled.

What's Next

It remains to be seen if Neumann's departure as CEO will improve investor sentiment.

The company continues to not only lose billions of dollars, but will need to spend billions more over time to expand the business.

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Photo courtesy of WeWork.