Adam Is WeWork. Adam Is Out. Where Does That Leave WeWork?

Adam Neumann will be stepping down as CEO of WeWork.
Mr. Neumann will remain a non-executive chairman of The We Company.
Currently, it’s unclear whether the company will continue with its IPO plans.

During a conference call hosted by The Information it was confirmed that Adam Neumann will be stepping down as CEO of WeWork.

The news comes after several sources reported that investors, including SoftBank, were looking to remove Mr. Neumann as CEO. The move to push Mr. Neumann out came shortly after WeWork made some governance changes in the hopes of warming up investors, including reducing Neumann’s supervoting rights and reducing his wife’s role in corporate matters.

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Sebastian Gunningham and Artie Minson will take over as co-CEOs. Mr. Neumann will remain as a non-executive chairman of The We Company.

WeWork has been a target of harsh criticism after it published its S-1 in mid-August as it geared up for an IPO. The IPO was postponed last week, and the company hasn’t confirmed when the IPO will take place. Following the removal of Mr. Neumann as CEO, it’s unclear whether the company will continue with its IPO plans or if it will seek to raise funds privately. If the company doesn’t go public this year, it would also lose a $6 billion credit line.

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The move to remove Mr. Neumann is expected to increase investor trust in the company, particularly after a profile of Mr. Neumann put into question his behaviors, including drug use and implausible aspirations like living forever, amassing more than $1 trillion in wealth, and becoming the leader of the world.

The Information also reported (paywall) that WeWork Executives and Bankers are considering laying off as many as 5,000 workers, slowing down expansion plans, and shutting down The We Company’s side businesses (WeLive, WeGrow, Flatiron School) in order to reduce costs and hopefully save the company.