Neumann will become non-executive chairman of its parent firm, the We Company. Sebastian Gunningham and Artie Minson, two current WeWork executives, will take over as interim co-CEOs as the company looks for Neumann’s replacement. Rebekah Neumann, WeWork co-founder and Adam’s wife, also resigned from the company. In a letter to staff, the ex-CEO said, “Our business has never been stronger, but since the announcement of our IPO, too much of the focus has been placed on me.” (New York Times, Bloomberg)

Talking point: Neumann’s ouster comes after pressure from board members and investors in the wake of the company’s botched IPO. Last week, the We Company halted its plans to go public after first reducing its valuation to US$15 billion, down from US$47 billion in January. Earlier this month, the board halved Neumann’s voting power following a wave of criticism over his leadership. The We Company’s struggles are especially troubling for SoftBank, the Japanese telecom giant that owns about a third of the company through its US$100-billion Vision Fund. Masayoshi Son, SoftBank’s chairman and CEO, once called WeWork his next Alibaba; by this week, he had joined the call to have Neumann removed. It’s not clear whether new leadership will be enough to correct the company’s course. The Information reported on Tuesday that We’s executives and bankers are discussing other ways the firm, which has negative cash flow, can drastically cut costs. That could include laying off up to 5,000 employees—a third of its workforce—and shutting down its education and housing divisions.