Wework board members consider removing chief executive Adam Neumann
Some Wework board members, including some tied to major investor Softbank, are planning to try to force chief executive Adam Neumann to step down, according to reports.
The board of the We Company’s board could meet as soon as this week, and may consider a proposal for Neumann to become the firm’s non-executive chairman, the Wall Street Journal reported.
Read more: Wework delays IPO plans amid investor caution
It has been a tumultuous week for the office space giant, which had to delay its planned IPO after its plans received a cool reception from investors.
Japanese conglomerate Softbank, combined with its Vision Fund and Delta Fund, is We’s largest investor, and has ploughed over $9bn into the company.
Softbank had bought shares in We based at a $47bn valuation, but the office space giant is now expected to seek a substantially lower valuation of around $20bn when it goes public.
Read more: Former Wework cleaners take to the streets to protest dismissals
The possible reduced valuation reflects would-be investors’ concerns about We’s ability to turn a profit. The company lost over $900m in the first half of this year.
We had reduced Neumann’s supervoting power earlier this month in a bid to salvage its planned IPO, slashing his voting power from 20 votes per share to 10.
Wework declined to comment. City PM has contacted Softbank for comment.
Main image credit: Getty