WeWork said CEO David Tolley will step down after the flexible workspace provider emerges from bankruptcy later on Tuesday, bookending a months-long global restructuring process that featured a strategy revamp and exits from several locations.Once privately valued at about $47-billion, WeWork expanded at a breakneck pace but racked up steep losses on its over-extended real estate portfolio before filing for bankruptcy protection in November 2023.
It received approval from a U.S. bankruptcy judge for a restructuring plan late last month, allowing the company to eliminate $4-billion in debt and hand over its equity to a group of lenders and a real estate technology company. Tolley joined WeWork in February 2023, initially as a board member and then as CEO, leading the company through a tumultuous period that saw major operational and financial revamps.
During his tenure, WeWork downsized its real estate portfolio sharply, renegotiating over 190 leases and exiting more than 170 unprofitable locations while also cutting annual rent and tenancy expenses by over $800-million. It also secured $400-million of new equity capital to support its business and future growth, and reduced its selling, general, and administrative expenses by more than 30 per cent during the period.