A group of WeWork board members is reportedly attempting to remove the company's CEO, Adam Neumann.
The Wall Street Journal reports that some members of the group looking to oust the office-sharing company's chief executive are tied to WeWork’s biggest investor, SoftBank Group Corp.
Reports of the effort come a week after WeWork delayed its stock market debut.
The company’s board could meet as soon as this week to potentially consider a proposal for Neumann to become the nonexecutive chairman, according to the Journal. That move would reportedly allow him to stay at the helm of the company he founded nine years ago and cultivated into one of the most valuable startups while also bringing in new leadership to boost its initial public offering (IPO).
Reuters previously reported that WeWork’s parent company, We Company, was seeking a valuation of between $10 billion and $12 billion for its IPO, a sharp drop from the $47 billion estimated in January.
The Journal notes the company went through more than $2 billion under Neumann last year, leading analysts to project We Company will go through its remaining cash on hand sometime next year.
Neumann still has allies on the board and voting power, the newspaper noted, adding, however, that SoftBank has significant influence due to its recent cash infusions, having invested more than $9 billion into the company to date.
The We Company declined to comment when contacted by The Hill.