What’s going on:
WeWork’s Chief Financial Officer Andre Fernandez is set to resign from his leadership role on June 1. The announcement follows closely after the departure of WeWork’s CEO, Sandeep Mathrani, which was revealed just last week.
Fernandez’s decision to step down from his leadership position at WeWork comes less than a year after assuming the role. WeWork said that Fernandez’s resignation was not a result of any disagreement, according to Reuters.
Taking over the CFO responsibilities will be Kurt Wehner, the company’s current Chief Accounting Officer. Wehner has been appointed as CFO and Treasurer.
Why it matters:
The departure raises questions about the company’s financial stability and strategic direction, as well as its ability to attract and retain top talent following a hard-hitting year for the company. These major executive changes come at a critical time for WeWork. The company has seen its shares plummet by 87% this year and its market capitalization dropped to around $404.7 million from a valuation of $47 billion in 2019, according to Reuters.
WeWork faces the possibility of being delisted from the New York Stock Exchange due to the company’s share price remaining below $1 for an extended period of time. WeWork’s share price opened at 20 cents on May 25.
How it’ll impact the future:
As a major player in the coworking industry, WeWork’s performance influences other key leaders in the industry. The company’s success or failures can drive demand for shared workspaces up or down. WeWork’s decisions can influence major investors in how they approach the industry.
With new leadership talent in place, the company is focusing on restructuring its debt and driving towards profitability. The pandemic-driven shift to flexible work outside traditional offices could provide an opportunity for WeWork to recover and adapt to the changing landscape.
