- WeWork is putting the private plane Adam Neumann used up for sale, Business Insider has learned.
- The company bought the luxurious Gulfstream G650 for $US60 million last year.
- Some employees told Business Insider that the optics of the Gulfstream upset staff members who couldn’t get promised bonuses and raises while the company spent millions on the plane and parties. It also raised red flags with investors.
- WeWork is moving to divest itself of some of its assets, including other businesses it purchased, as it tries to better position itself for an initial public offering.
- Read more stories about WeWork here.
WeWork is selling the luxurious plane that its cofounder Adam Neumann used to travel the world – a symbol of the company’s corporate-governance issues that have in part derailed its initial public offering.
The company bought the Gulfstream G650 for $US60 million last year. Some investors said the private plane was a corporate-governance red flag in the lead-up to the company’s IPO, according to a source familiar with the matter.
On Tuesday, Neumann said he would step down as WeWork’s CEO, saying the intense public scrutiny of him was a “distraction.”
The company’s two new CEOs, Artie Minson and Sebastian Gunningham, are looking to offload three businesses it has purchased in recent years: Managed by Q, Conductor, and Meetup.
Multiple employees told Business Insider in recent weeks that staff members were frustrated by the company spending so much on the plane and lavish parties while managers cited a lack of resources when they denied promised bonuses and salary raises.
“The company was spending $US60 million on an aeroplane, and I can’t get a decent raise? It felt like it was ‘We over me,’ unless me was Adam. And We was Adam,” one midlevel employee said.
Another employee who worked on the plane’s renovations said two bedrooms were added. The jet has multiple televisions and Apple TVs, as well as a central computer to run all media. Staff members “had to download thousands of TV shows and movies on it for the kids to watch,” the employee said. “We literally sat at work for three days straight doing this.”
The other modifications were cosmetic, the employee said.
A third employee said the plane functioned as a meeting space for Neumann. Because of Neumann’s busy schedule, employees struggled to meet him in the office, so he often hosted meetings on the jet.
“I know of instances where people got on the plane, flew across the country, and flew commercial home,” the executive said.
The Gulfstream G650 is considered one of the most luxurious and popular private jets available. The plane has a range of more than 8,000 miles – at top speed, it can fly from London to New York or Beijing, while at a slower, more fuel-efficient rate, it can get to Buenos Aires or Los Angeles, Business Insider previously reported.
It’s a popular jet among the rich and famous, as well as the executives of global corporations. Tesla CEO Elon Musk and former Starbucks CEO Howard Schultz are among the jet’s owners, as was the Apple CEO Steve Jobs. More than 350 G650 planes have been built.
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- Read more:
- WeWork’s board just ousted Adam Neumann as CEO – here’s who the key players are
- Adam Neumann is out as WeWork’s CEO, but that’s no ‘silver bullet’: VCs and proptech experts think it will take cutting passion projects and cleaning house to right the ship
- WeWork cofounders Adam and Rebekah Neumann are close friends with Ivanka Trump and Jared Kushner and invited them to Rebekah’s extravagant 40th birthday bash in Italy
- The CEO of $US1 billion WeWork rival Knotel says the idea of coworking is ‘over’
- We got a peek at WeWork’s top landlords. Here’s who is most exposed to the fast-growing, but money-losing, coworking company as it prepares to IPO
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