Adam Neumann’s decision to step down as CEO of the We Company does not necessarily change the health of the firm or clear the way for an IPO, according to Bloomberg’s Shira Ovide. The company has been struggling with a lack of liquidity and is looking at options that include selling its stake in the company, which it acquired from private equity group Apollo Global Management LP last year. She questioned whether the current board members are suitable stewards of the company, given the role they have played to date. But, WeWork needs a lot of cash, soon. Two WeWork insiders, the chief financial officer and vice chairman of the board, will become co-CEOs. Bankers and some We executives have reportedly been discussing cutting headcount by 33%, slowing growth and shutting non-core businesses.
Adam Neumann’s decision to step down as CEO of the We Company does not necessarily change the health of the firm or clear the way for an IPO, according to Bloomberg’s Shira Ovide. The company has been struggling with a lack of liquidity and is looking at options that include selling its stake in the company, which it acquired from private equity group Apollo Global Management LP last year. She questioned whether the current board members are suitable stewards of the company, given the role they have played to date. But, WeWork needs a lot of cash, soon. Bankers and some We executives have reportedly been discussing cutting headcount by 33%, slowing growth and shutting non-core businesses.