WeWork’s Neumann to step down as CEO: sources

FILE PHOTO: Adam Neumann, CEO of WeWork, speaks to the guests at the TechCrunch disrupt event in midtown Manhattan in New York City, NY, USA, May 15, 2017. REUTERS/Eduardo Munoz/File Photo

NEW YORK/BENGALURU (Reuters) – WeWork co-founder Adam Neumann has agreed to resign as chief executive of the AMERICAN office, part of the company but will remain as non-executive chairman, bowing to pressure from some of its investors, people familiar with the matter said on Tuesday.

The decision was taken at a meeting of the board on Tuesday, following a challenge to the Construction of authority by its biggest investors including Japan’s SoftBank Group Corp (9984.(T), a venture capital firm, Benchmark Capital, a Chinese private equity firm Hony Capital, the sources said.

The investors are already in a majority, We are a Company, a seven-member board of directors, and to push for the Neumann’s resignation as chief executive officer, is one of the sources added.

Artie Minson, currently the company’s chief financial officer, WeWork grow older, We are a Company, and Sebastian Gunningham, a vice-president of the New York-based start-up, will be the co-chief executive officers, the sources said.

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The management changes come after We are a Company delayed its initial public offering (IPO) last week, following a push-back from the perspective of investors, it is not only about expanding the scope of the loss, but it is also about the Construction’s unusually tight grip on the company.

This was a blow to SoftBank, which is hoped to have We are a Company with IPO to enhance its life if it wants to woo investors for the second and $108 billion for the Vision Fund. It has invested in the Company at $47 billion valuation in January.

We are the Company declined to comment.

Reporting by Joshua Franklin in New York and Anirban Sen in Bengaluru; Additional reporting by Greg Roumeliotis in New York; Editing by Chizu Nomiyama and Dan Grebler

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