Some members of the WeWork board are said to be unhappy with its leadership and plan to push WeWork CEO Adam Neumann to step down, according to several media reports.
The reports say the board members are connected to Japan's SoftBank Group, WeWork's biggest investor. The Wall Street Journal and other outlets cited anonymous sources familiar with the matter. WeWork parent the We Company declined to comment and SoftBank did not respond to a request for comment.
Concerns about Neumann's management style has roiled the company, with a recent report in the Journal alleging that the CEO had reportedly smoked marijuana on a Gulfstream G650 private jet while traveling across the Atlantic. The jet's owner, said to be worried about transporting marijuana across borders, reportedly recalled the aircraft, according to the Journal.
On Tuesday, WeWorkfor an initial public offering until as late as year-end. Once valued at $47 billion, the office-share company is facing questions amid a $1.6 billion loss in 2018 and worries about its co-founder's grip over the company and its board.
The board is expected to meet early this week and consider a proposal for Neumann to become non-executive chairman of We Co., The Wall Street Journal reported on Sunday.
Skepticism about WeWork's business model has deepened since the company outlined its finances in paperwork related to the IPO. Although the company's revenue has risen sharply, reaching $1.8 billion in 2018, its losses have mounted almost as quickly, reaching $1.6 billion last year.
We Co. is on track to lose $2.7 billion this year from its operations, according to a CBS MoneyWatch review of its IPO documents filed in August. Indeed, the company loses who inhabits its office space per year.