Adam Neumann is stepping down as CEO of The We Company but the good thing is that he is still a non-executive chairman of the We Company. For those who are wondering what the matter is exactly about, in the version event launched by WeWork, the documentation made it possible to see in one place that Neumann rented its own building to We We (formerly known as WeWork) in one place. He primarily secured a loan to change the company’s name from WeWork to The We Company.
According to the Wall Street Journal, Neumann’s Pecardillo surprised the owner of the plane by weeding on a private jet from the United States to Israel, firing 7% of his staff, then taking in Darryl McDaniels of Run-DMC and drinking tequila with the remaining employees; and flying senior employees to a summer camp where he riffed about solving the problem of orphans and eradicating world hunger.
The company is not a joint venture between the founder (who provides the vision and the work and the name) and the investors (who provide the money); the company belongs to the founder, and the investors are hired providers of a relatively low-value input (money), who can expect only a grudging economic share, not any sort of say in running the business, Bloomberg’s Matt Levine wrote
Neumann’s previous business included women’s shoes with collapsible heels and baby clothing on her knees. WeWork produced $ 1.8 billion in sales last year but lost $ 1.6 billion. The company will most presumably fire 5,000 employees.
“The amount of cash we can freely use without new funding or cost savings could be reduced from $ 1.9 billion to $ 400 million by next March.” Information wrote.
WeWork’s finances used to approach Masayoshi Son, founder of SoftBank. SoftBank’s entire transaction is to pump money into the company until it takes over the market and weakens its profits. Some of the company’s other investments, such as Uber and Slack, have minimized the S & P 500 since its IPO.
“We made WeWork“ 10 times bigger than our original plan, ”recognizing that being crazy in a fight is better than being smart, and we found out that“ We were crazy enough. ” Masayoshi Son told New York magazine.
Moreover, Vice Chairman Artie Minson and Sebastian Gunningham, the chief financial officers are now replacing Neumann.