WeWork's next step involves cutting staff and stemming losses
WeWork CEO Adam Neumann stepped down on Tuesday, just days after investors, including Softbank CEO Masayoshi Son, the company's largest, were in favor of ousting him.
It may be the start of several changes involving the office-space provider.
The company will be evaluated by incoming management with decisions to be made including cost cutting, which could involve cutting a few thousand of the company's 12,000 employees according to the Wall Street Journal.
Neumann will remain nonexecutive chairman and be succeeded by two of his deputies,
Artie Minson, finance chief of the parent company We Co.,will focus on finance, legal and human resources. Sebastian Gunningham, a veteran of Amazon, will handle marketing and technology.
“We will closely review all aspects of our company with the intention of strengthening our core business,” the incoming CEOs said in a statement.
We Company postponed its initial public offering last week after potential investors pushed-back over among other things, the amount of control Neumann had over the company.
CLICK HERE TO READ MORE ON FOX BUSINESS
Neumann will also give up majority control of the company, with his supervoting shares reportedly reduced to 3-to-1 from 10-to-1.
A potential IPO valuation earlier this month came in as low as $10 billion.