- WeWork’s new co-CEOs plan to push out about 20 friends and family members of Adam Neumann, their recently ousted predecessor, according to The Wall Street Journal’s Eliot Brown, Anupreeta Das, and Maureen Farrell.
- Included in that group are the vice chair, Michael Gross; the chief product officer, Chris Hill; and 10 employees who reported directly to Neumann, according to the report.
- Co-CEOs Artie Minson and Sebastian Gunningham also plan to cut thousands of jobs and to sell off some of WeWork’s businesses outside its core commercial real-estate operations, The Journal reported.
- Minson and Gunningham took over from Neumann earlier this week in the wake of WeWork’s failed initial public offering.
- Read all of Business Insider’s WeWork coverage here.
WeWork’s new co-CEOs appear eager to make a sharp break from Adam Neumann’s reign.
Artie Minson and Sebastian Gunningham plan to oust some 20 friends and family members of Neumann as part of an effort to overhaul the company and its management, The Wall Street Journal’s Eliot Brown, Anupreeta Das, and Maureen Farrell reported Thursday. Among those said to be in their sights are Michael Gross, a longtime friend of Neumann who serves as WeWork’s vice chair, and Chris Hill, the company’s chief product officer, who is also a brother-in-law of Neumann’s wife, Rebekah.
Business Insider had previously reported that Hill was expected to leave, along with Roni Bahar, WeWork’s director of development, and Zvika Shachar, its head of global security.
In addition to Gross and Hill, The Journal reported that about 10 employees who directly reported to Neumann in a group dubbed the “oval office” would also be leaving the company. It was unclear whether Bahar and Shachar were part of the “oval office.” Also, Rebekah Neumann is stepping down from her roles at the company, Bloomberg reported earlier this week.
WeWork representatives did not immediately respond to an email seeking comment.
The new co-CEOs are cleaning up after WeWork’s failed IPO
Minson and Gunningham are expected to go far beyond just pushing out Neumann’s circle in trying to reshape the company. They’re also expected to slash thousands of jobs and sell off businesses outside WeWork’s core office-rental operation, The Journal reported. Additionally, they’re planning to sell off the company’s Gulfstream G650ER jet that the company purchased last year for $US60 million, as Business Insider reported. Neumann used the jet often to fly between New York and the Bay Area, according to The Journal; he has homes in both places.
The changes come after Neumann’s abrupt downfall in the wake of WeWork’s failed initial public offering. The company was planning on going public as soon as this month, but it postponed the IPO after meeting stiff resistance from prospective investors who were concerned about its governance and spiraling losses. Initially, the company said it still planned to go public later this year. Now, the company may be thinking about pushing back the offering into next year, according to The Journal’s report.
WeWork has $US6 billion riding on the timing and success of its IPO. A collection of lenders, including JPMorgan, have promised to give it a credit line of up to that amount if it raises $US3 billion in a public offering this year, though they could change the terms of that agreement.
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- Read more about WeWork:
- Even after ousting Adam Neumann as CEO, WeWork could still go public this year – if it prices its IPO low enough
- Firing Adam Neumann doesn’t solve WeWork’s biggest problem: The underlying business stinks
- Renovation work on WeWork CEO Adam Neumann’s $US10.5 million Manhattan townhome led to disputes with contractors over $US1 million in alleged unpaid bills
- There are 6 billion very good reasons for WeWork to go public this year, even though Wall Street doesn’t want it