WeWork’s embattled CEO Adam Neumann finally steps down

WeWork’s co-founder and CEO Adam Neumann has stepped down from the CEO position.

A press release from the company said he will serve as the non-executive chairman of the board.

In his stead, Sebastian Gunningham – WeWork’s vice chairman, and chief operating officer Artie Minson will serve as co-CEOs.

The controversial Mr. Neumann was forced to step down after revelations of alleged nepotism, self-dealing, drug use among other allegations.

Mr. Neumann said in a statement, “As co-founder of WeWork, I am so proud of this team and the incredible company that we have built over the last decade.”

He added, “Our global platform now spans 111 cities in 29 countries, serving more than 527,000 members each day. While our business has never been stronger, in recent weeks, the scrutiny directed toward me has become a significant distraction, and I have decided that it is in the best interest of the company to step down as chief executive. Thank you to my colleagues, our members, our landlord partners, and our investors for continuing to believe in this great business.”

Related article: WeWork’s Adam Neumann could soon be ousted from CEO position

Japanese firm, SoftBank, is WeWorks’s biggest investor is said to have spearheaded the move to dethrone Mr. Neumann, having lost faith in his abilities to lead the company to IPO.

WeWork had announced its IPO with an initial valuation of USD 47 Billion, which has since plummeted to USD 15 Billion. This is primarily due to SoftBanks continued investment in the firm despite WeWork making close to USD 1 Billion in losses as of the 30th of June.

According to the latest news, Neumann’s voting shares will be reduced from 10:1 to 3:1.