WeWork is reportedly unlikely to go public this year - and thousands of layoffs could be coming
- WeWork announced on Tuesday that co-founder Adam Neumann was stepping down from his position as CEO, following a disastrous month in which the company postponed its plans to go public.
- The Wall Street Journal reported Tuesday that WeWork is "unlikely" to still go public this year, according to sources familiar with the matter.
- WeWork's new co-CEOs, Artie Minson and Sebastian Gunningham, are also reportedly considering "a few thousand" layoffs in coming months to limit extraneous costs at the company.
- Read all of Business Insider's WeWork coverage here.
The embattled WeWork is reportedly unlikely to go public this year after a disastrous month that came to head when the company replaced its CEO this week.
Sources told The Wall Street Journal that the co-working company probably won't publicly list its shares this year as originally planned. WeWork initially filed its IPO paperwork in August, kicking off a swift fall from grace in which the company, once privately valued at $47 billion, is now reportedly seeking a public valuation as low as $10 billion.
Since its IPO paperwork was released, scrutiny was placed on the company's massive losses and on its CEO Adam Neumann's questionable business dealings, drug and alcohol use, and conflicts of interest. WeWork made some changes in an attempt to right its IPO, but the company announced earlier this month it was delaying its IPO, but was still expecting to list its shares by the end of the year. Then on Tuesday, Neumann said he had become a "significant distraction" to WeWork's IPO plans, and announced he was stepping down from his position as CEO in the company's "best interest."
The Wall Street Journal report details Neumann's final days as head of WeWork. While some on the company's board of directors pushed to oust Neumann, the WeWork cofounder had the support of many of them "as of Friday and into the weekend," according to the Journal. However, by Sunday, some of Neumann's biggest allies on the board reportedly told him they were pushing for his departure, echoing concerns from SoftBank, the Japanese firm that has injected billions into WeWork.
Replacing Neumann as CEO are two current WeWork executives who will serve as co-CEOs: Sebastian Gunningham and Artie Minson. The Journal reports that the two CEOs are considering "a few thousand" layoffs at WeWork in order to help cut costs ahead of an IPO. WeWork declined to comment.
In an email to staff on Tuesday, the co-CEOs said they would "closely review all aspects" of the company, and said to expect "difficult decisions ahead."