We Are In Deep Sh*t
Adam Neumann Has Fallen, But WeWork Still Needs Their Billions — What’s Going To Happen To Them?
Though the charismatic billionaire that is Adam Neumann stepped down as CEO, WeWork’s troubles are far from over.
The problem is, they are getting bigger by the day.
Over the past few months, the media had a field day scrutinising WeWork’s initial public offering. From the strange details in the S-1 to the company’s business model, articles flooded the net. Over a month later, Neumann buckled under the heavy fire, stepping down as CEO.
In a surprise move, the high-octane Israeli ceded majority voting rights and control. At WeWork, Neumann remains as a non-executive chairman of the board.
WeWork — or, The We Company — operates on a subleasing business model. Nothing fancy: they lease space from landlords, make the space fancy and subleases them out at a premium.
A large part of their membership revenue comes from enterprise sales. For instance, WeWork designs, managers entire spaces to sublease out to large companies — IBM is one example, who recently moved up to 600 employees to 88 University Place.
While their primary source of revenue may come from the coworking membership sales, WeWork has been…
