WeWork has announced David Tolley as its CEO, marking a shift in leadership as the flexible workspace provider works to revamp its business. Tolley, formerly the CFO of satellite operator Intelsat from 2019 to 2022, has been a member of WeWork’s board since February 2023 and has served as interim CEO since May 2023.
WeWork has faced significant challenges since its failed attempt to go public in 2019 due to concerns about its financial losses and business model. It eventually went public in 2021 at a reduced valuation. To conserve cash, the company implemented various cost-saving measures in the past year, including exiting locations, reducing staff, and restructuring debt.
Sandeep Mathrani resigned as CEO in May, followed by CFO Andre Fernandez’s departure. In August, WeWork expressed “substantial doubt” about its ability to continue operations, a stark contrast to its previous private valuation of $47 billion. To regain compliance with listing requirements, the company conducted a one-for-forty reverse stock split.
While WeWork benefited from the trend toward flexible work during the pandemic, it reported a 3% decrease in total physical memberships in August compared to the previous year. The company cited increased competition, macroeconomic uncertainty, and softer-than-expected demand as reasons for the decline.
