Adam Neumann the co-founder of WeWork stepped down as the Chief Executive Officer (CEO) of The We Company as reported by the New York Times. Neumann will act as the Chairman of the shared office startup. He will give up majority control of the company, reports The Wall Street Journal.
“While our business has never been stronger, in recent weeks, the scrutiny directed toward me has become a significant distraction,” Neumann said in a statement Tuesday. “I have decided that it is in the best interest of the company to step down as chief executive.”
Neumann was facing a lot of pressure from the board member of WeWork to resign as the CEO and take a position as a nonexecutive chairman. Even SoftBank’s CEO and chairman Masayoshi Son supported his removal according to the New York Times.
The startup had been one of the most highly valued companies. Heavy losses and the wide discrepancy between Neumann and other company’s shareholder came to light during the IPO filing. WeWork’s bond fell to their lowest mark in after the decision of Neumann to step down.
“As co-founder of WeWork, I am so proud of this team and the incredible company that we have built over the last decade,” Neumann said in a statement issued by the company. “When Miguel, Rebekah(his wife) and I founded WeWork in 2010, we set out to create a world where people work to make a life and not just a living,” Adam Neumann wrote in an email to employees.
“As we take this next step in our company’s journey, I am equally ready to listen, grow and continue working relentlessly on my commitment to all of you.” After Neumann’s departure from the CEO post Rebekah will also cede from taking decisions on business matter said one of the workers anonymously.
The company is not planning for hiring a new CEO as reported by the company to The Verge. Sebastian Gunningham and Chief Financial Officer Artie Minson, will serve as co-chief executives.