WeWork CEO David Tolley stepped down after the flexible workspace provider emerged from bankruptcy on Tuesday, bookending a months-long restructuring process that featured a strategy revamp and exits from several locations.
The company named commercial real estate industry veteran John Santora as its new top boss. He most recently served as Tri-State chairman at global real estate services firm Cushman & Wakefield.
Read more: When Chandrababu Naidu persuaded Bill Gates for Microsoft's Hyderabad office in a 40-minute meeting
Once the most valuable U.S. startup, WeWork expanded at a breakneck pace but racked up steep losses due to expensive leases and a sharp pandemic-driven slump in demand, before filing for bankruptcy protection in November 2023.
WeWork received approval from a U.S. bankruptcy judge for a restructuring plan late last month, allowing it to eliminate $4 billion in debt and hand over its equity to a group of lenders and real estate technology company Yardi Systems.
Tolley joined WeWork in February 2023 as a board member. He became CEO in October, leading the company through a tumultuous period that saw major operational and financial revamps.
Read more: India may grow 6.7% on average from FY25-FY27: World Bank
{{/usCountry}}Tolley joined WeWork in February 2023 as a board member. He became CEO in October, leading the company through a tumultuous period that saw major operational and financial revamps.
Read more: India may grow 6.7% on average from FY25-FY27: World Bank
{{/usCountry}}During his tenure, WeWork downsized its real estate portfolio sharply, renegotiated more than 190 leases, exited over 170 unprofitable locations, and cut annual rent and tenancy expenses by over $800 million.
It also secured $400 million in new equity capital to support its future growth, while cutting down its expenses by more than 30%.
The startup was one of the biggest bets of SoftBank Group , which owned around 71% stake last November, even though over the years it wrote down most of its investment. It is set to retain a minority stake on account of the loans it provided.
Read more: Zerodha investors made Rs.50,000 crore profit in four years: Nithin Kamath
WeWork rebuffed a $650 million offer in April from co-founder and former owner Adam Neumann, saying his proposal did not offer a high enough price to win over lenders.
The beleaguered firm estimated its post-bankruptcy equity to be worth about $750 million, a far cry from the $47 billion valuation it commanded in 2019.