WeWork co-founder to leave company
Miguel McKelvey, who spent 10 years at the company, will leave by the end of June
WeWork co-founder Miguel McKelvey will leave the company by the end of June, he announced in a Friday email to colleagues.
"After 10 years, I’ve made one of the most difficult decisions of my life – one that I’m not even sure has sunk in just yet," McKelvey wrote in the email. "But at the end of this month, I’ll be leaving WeWork. While it’s hard to leave, and I know there is a lot more work to be done, I could only make this decision knowing this company and our people are in good hands."
McKelvey thanked team members for helping to make his "daydream" turn into his "day job" and "helping thousands of other people do the same."
"I’ll carry with me the past decade of meaningful memories and powerful experiences for the rest of my life," he said.
WeWork logo at the entrance to one of their office spaces in the SoHo neighborhood of New York. (AP Photo/Mary Altaffer).
The announcement comes as WeWork faces a new lawsuit filed on behalf of investors in a San Francisco federal court alleging that the embattled commercial real-estate company oversold its business plan and downplayed company losses in 2019, according to Bloomberg.
WEWORK UNVEILING PLANS TO ADAPT TO CHANGING ECONOMY
WeWork came under fire in September after investors raised red flags about its irresponsible spending and co-founder Adam Neumann's mismanagement of the company's funds. WeWork was then forced to end plans to sell public shares of its stock as it fell toward bankruptcy.
Japanese multinational conglomerate holding company Softbank bailed out WeWork in October for $5 billion but decided to terminate a $3 billion tender offer in April. WeWork sued Softbank on April 7 for retracting the offer, alleging that Softbank breached transaction agreement obligations. SoftBank promised to invest more than $14 billion in WeWork, including the bailout.
WEWORK DIRECTORS SEEK TO PRESERVE RIGHT TO SUE OWNER SOFTBANK
A man walks past a SoftBank mobile phone store on September 30, 2019 in Tokyo, Japan. (Photo by Carl Court/Getty Images)
"Miguel’s dedication to establishing a community that fosters connection and compassion has helped build a business that recognizes and celebrates inclusivity, authenticity, learning, and growth," Mathrani said. "I am confident Miguel will bring the same entrepreneurial spirit to his future endeavors and we wish him all the best in what lies ahead. He has left an indelible mark on this company and he will be missed."
Marcelo Claure, CEO and chief operating officer of Softbank and chief operating officer and executive chairman of WeWork, said he will be "forever grateful" for McKelvey's leadership.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
"Just looking at our thousands of employees and more than 600,000 members around the world is a testament to the true power and value of what Miguel has helped to build - a place for everyone to make a difference," Claure said. "I will be forever grateful to have learned so much from him not just as a colleague, but a true friend. I know that whatever his next adventure holds, he will continue to have an impact on so many."
WeWork has undergone extensive business model and leadership changes over the last year.
WEWORK UNVEILS CORONAVIRUS PLAN FOR TENANTS