NEW YORK (CBSNewYork/AP) — WeWork’s co-founder Adam Neumann has been forced out of his position as CEO.
WeWork, the office space sharing company that has become the biggest tenant in New York City and a major force in driving commercial real estate prices around the U.S., is replacing Neumann as it struggles to go public and raise enough cash to keep it going past Valentine’s Day.
The office-sharing startup postponed its IPO after failing to drum up support. Its valuation has also fallen dramatically from $47 billion dollars to as low as $10 billion.
Neumann is being replaced by Artie Minson and Sebastian Gunningham, WeWork’s chief financial officer and vice chairman, respectively, who will now operate as co-CEOs. Neumann will stay on as chairman of the board.
Earlier in September WeWork delayed plans for an initial public offering.
Skepticism about WeWork’s business model has deepened since the company outlined its finances in paperwork related to the IPO. The company’s revenue has risen sharply, reaching $1.8 billion in 2018. But its losses have mounted almost as quickly, reaching $1.6 billion last year.
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