WeWork co-founder Adam Neumann will leave his position as the office-sharing company's CEO and will serve as nonexecutive chairman of the board.
The firm's board of directors announced the change Tuesday. Former co-president and Chief Financial Officer Artie Minson and former Vice Chairman Sebastian Gunningham will serve as co-CEOs.
The changes are effective immediately.
"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," Neumann said in the board's statement.
“We would like to thank Adam for his vision and his passion in building WeWork over the past 9 years," Minson and Gunningham said in the statement. "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."
The news followed reports that a group of WeWork board members was trying to remove Neumann.
The decision was made during a Tuesday board call, a person briefed on the discussion told The New York Times.
The Times reported that Neumann's departure from the role comes amid questions about whether he had too much control of the firm.
The reports follow the delay of WeWork's initial public offering (IPO), which was reportedly tabled until a least next month.
Reuters previously reported that the We Company could seek a valuation of between $10 billion and $12 billion, well below the $47 billion estimated in January.