Adam Neumann is officially out as CEO of WeWork. He will remain non-executive chairman, but will cede majority control of the company with his super-voting shares reduced to 3-to-1 from 10-to-1.
- Succession: Neumann will be succeeded by two of his deputies: Current finance chief Artie Minson will oversee legal, financial, and human resources, while Vice Chair Sebastian Gunningham will tend to marketing and technology. The co-CEO’s will try to stem the company’s substantial losses by shedding extraneous businesses and slashing its workforce by a few thousand employees, according the WSJ.
- Drama will continue: The co-working company is in talks with JPMorgan and Goldman seeking a new $3 billion loan, which would likely require the startup to raise several hundred million dollars of new equity. This would give WeWork enough cash to keep operating through the end of next year.