Adam Neumann, the CEO of the coworking and office space startup WeWork, is stepping down from his position, according to a statement released by the company on Tuesday.
"While our business has never been stronger, in recent weeks, the scrutiny directed toward me has become a significant distraction, and I have decided that it is in the best interest of the company to step down as chief executive," said Neumann in a statement.
Two current executives, Artie Minson and Sebastian Gunningham, will serve as co-CEOs until a permanent replacement is found, the company said.
"Our core business is strong and we will be taking clear actions to balance WeWork's high growth, profitability and unique member experience while also evaluating the optimal timing for an IPO. We are committed to the continued success of our members, partners, employees and shareholders on this new journey," said Minson and Gunningham in a prepared statement.
Neumann is now expected to serve as a nonexecutive chairman of the company's board.
Neumann had faced increasing pressure to leave the position, especially following reports of indulgent and impulsive behavior by the executive.
Overall, it's been a difficult month for the company. It's delayed its public offering and faced increasing scrutiny over its governance and valuation.
The company also added a female board member, Frances Frei, after it had been criticized for having an all-male board.
Much like all the upheaval shaking the world, the huge swings rocking Wall Street may feel far from normal. But, for investing at least, this is normal.
Joe Cecela, Dream Exchange CEO, explains how they are aiming to form the first minority-controlled company to operate an exchange in U.S. history. Watch!
A Michigan judge is putting sponges in the hands of shoplifters and ordering them to wash cars in a Walmart parking lot when spring weather arrives. Genesee County Judge Jeffrey Clothier hopes the unusual form of community service discourages people from stealing from Walmart. The judge also wants to reward shoppers with free car washes. Clothier says he began ordering “Walmart wash” sentences this week for shoplifting at the store in Grand Blanc Township. He believes 75 to 100 people eventually will be ordered to wash cars this spring. Clothier says he will be washing cars alongside them when the time comes.
