WeWork CEO Facing Pressure After Delay Of IPO, Mixed Financial Performance
NEW YORK (CBSNewYork/AP) — WeWork's co-founder and CEO Adam Neumann is facing increased pressure to resign.
The WeWork board is expected to meet as early as this week to discuss Newmann becoming a non-executive chairman.
The office-sharing startup postponed its IPO after failing to drum up support.
Reports say the board members are connected to Japanese firm SoftBank Group, WeWork's biggest investor. The Wall Street Journal and other outlets cited anonymous sources familiar with the matter.
Its valuation has also fallen dramatically from $47 billion dollars to as low as $10 billion.
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.
(© Copyright 2019 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)
