WeWork co-founder Adam Neumann stepped down as CEO of the co-working startup on Tuesday.
Neumann will remain at WeWork as non-executive chairman of the board. Two WeWork executives, Arthur Minson and Sebastian Gunningham, will take over as co-CEO.
"As co-founder of WeWork, I am so proud of this team and the incredible company that we have built over the last decade," Neumann said in a statement to Business Insider.
"Our global platform now spans 111 cities in 29 countries, serving more than 527,000 members each day," he continued. "While our business has never been stronger, in recent weeks, the scrutiny directed toward me has become a significant distraction, and I have decided that it is in the best interest of the company to step down as chief executive. Thank you to my colleagues, our members, our landlord partners, and our investors for continuing to believe in this great business."
WeWork's new co-CEOs, Minson and Gunningham, thanked Neuman in a joint statement and mentioned they would be "taking clear actions to balance WeWork's high growth, profitability, and unique member experience while also evaluating the optimal timing for an IPO."
Minson was previously WeWork's co-president and CFO; Gunningham was previously vice chairman.
"We would like to thank Adam for his vision and his passion in building WeWork over the past 9 years," Minson and Gunningham said.
"Our innovative membership model, beautiful designs and inventive community offerings have changed the way individuals and enterprises around the world think about their workspaces," they continued. "It is an incredible honor to lead WeWork during this important moment in the company's history. Our core business is strong and we will be taking clear actions to balance WeWork's high growth, profitability and unique member experience while also evaluating the optimal timing for an IPO. We are committed to the continued success of our members, partners, employees and shareholders on this new journey."
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Read WeWork's full statement on the shakeup below:
WeWork's Board of Directors today announced the following leadership changes: Co-founder Adam Neumann has decided to step back from his role as CEO, and will continue on as non-executive chairman of the board. WeWork's Artie Minson, formerly co-president and chief financial officer, and Sebastian Gunningham, formerly vice chairman, have been named co-CEOs of the company. These changes are effective immediately.
Adam Neumann said: "As co-founder of WeWork, I am so proud of this team and the incredible company that we have built over the last decade. Our global platform now spans 111 cities in 29 countries, serving more than 527,000 members each day. While our business has never been stronger, in recent weeks, the scrutiny directed toward me has become a significant distraction, and I have decided that it is in the best interest of the company to step down as chief executive. Thank you to my colleagues, our members, our landlord partners, and our investors for continuing to believe in this great business."
Artie Minson and Sebastian Gunningham said: "We would like to thank Adam for his vision and his passion in building WeWork over the past 9 years. Our innovative membership model, beautiful designs and inventive community offerings have changed the way individuals and enterprises around the world think about their workspaces. It is an incredible honor to lead WeWork during this important moment in the company's history. Our core business is strong and we will be taking clear actions to balance WeWork's high growth, profitability and unique member experience while also evaluating the optimal timing for an IPO. We are committed to the continued success of our members, partners, employees and shareholders on this new journey."
Board member Bruce Dunlevie, a partner at Benchmark and early investor in WeWork, said: "Adam has overseen the creation of a global platform that supports its members daily, and has grown to more than $4 billion in run-rate revenue in less than ten years. He and the WeWork team have redefined the ways in which people and companies approach work, and brought innovation to the real estate industry. I am excited about the future of WeWork and thrilled to have Artie and Sebastian take the baton from Adam to lead the next phase of growth."
Board member Lew Frankfort said: "Adam is that very rare breed of entrepreneur who has the vision and drive to conceptualize an enormous business opportunity and then attack it relentlessly. He has created one of the fastest growing businesses in history, and my fellow directors and I thank him for his leadership. Our board of directors is excited to welcome Artie and Sebastian as leaders of WeWork in its next phase, and are pleased by the company's rapid growth trajectory and industry-leading position in the market."
