UPDATE 9/24, 1:20 p.m. ET:Adam Neumann will step down as CEO of WeWork, the New York Timesreports. The company's vice chairman Sebastian Gunningham, along with president & chief operating officer Artie Minson will serve as interim co-CEOs, while the board searches for a permanent replacement. The move comes after Neumann faced mounting pressure to step down after reports emerged about his bizarre behavior.
See original story below.
In a hellworld where law-dodging tech companies and startups seem immune to any real pressure, one of the small joys is watching a bunch of techbros absolutely faceplant. That's what's going on at WeWork right now, as more and more details about the real estate company rebranding as a startup trickle out to show how incredibly recklessly the company has been run and valuations of the company plummet.
The company botched its first attempt at an IPO, sending out a prospectus that garnered immediate skepticism and led to its valuation being dropped by almost 75%. The company pulled out of the IPO amid criticism but stories from inside the company keep on coming. In a new Wall Street Journal profile on company founder Adam Neumann, the CEO comes off as both tyrannical and ridiculously out-of-touch.
One anecdote from the piece in particular shows that Neumann might not have the most solid financial mind. During a meeting where he was discussing a layoff that cut 7% of WeWork's actual workforce, Neumann brought along servers with trays of tequila and had a special performance by DMC from Run-DMC.
"A few weeks after Mr. Neumann fired 7% of the staff in 2016, he somberly addressed the issue at an evening all-hands meeting at headquarters, telling attendees the move was tough but necessary to cut costs, and the company would be better because of iit," the piece reads.
"Then employees carrying trays of plastic shot glasses filled with tequila came into the room, followed by toasts and drinks. Soon after, Darryl McDaniels of hip-hop group Run-DMC entered the room, embraced Mr. Neumann and played a set for the staff. Workers danced to the 1980s hit “It’s Tricky” as the tequila trays made more rounds; some others, still focused on the firings, say they were stunned and confused."
The report also reveals that employees might have been fired after Neumann's wife decided she didn't like their energy. It shares that Neumann banned expensing meals containing meat, only to be found eating meat since.
Take a look at the whole thing over at WSJ.
