WeWork co-founder Adam Neumann has decided to step down as CEO of the office sharing startup, people with knowledge of the matter said, citing pressure from board members tied to SoftBank.
Neumann will remain as chairman of the company he started in 2010, and he continues to control a majority of voting shares, the sources said. The company confirmed the report, saying the change is effective immediately.
As we published an article on sunday, there were speculation in the WeWork board to replace Adam Neumann as chief executive.
The showdown between SoftBank and Adam comes after We Company postponed its initial public offering (IPO) last week.
SoftBank is considering to make Neumann as a interim CEO and hired an external replacement.
However, SoftBank could choose not to back We Company’s IPO or provide it with more funding. It has already funded the cash-burning start-up to the tune of $10 billion, and was discussing committing another $1 billion to the IPO.
Adam Neumann founded the company in 2010 with Miguel McKelvey.