Now that Adam Neumann has relinquished his role as CEO of WeWork parent We Co., investors and employees should expect to see costs being slashed and non-core projects abandoned – just as the likes of Lyft, Inc. and Uber Technologies, Inc. have witnessed. That’s according to IPO Edge Editor-in-Chief John Jannarone, who spoke to Cheddar TV shortly after news broke that Mr. Neumann had been pushed out. For the IPO to get done, the company will likely need to undergo a transformation into a real-estate company focused on booking profitable tenants. That likely means a new CEO with a strong real-estate background and a farewell to the star culture Mr. Neumann built. WeWork may also be a cautionary tale for other founders planning to undergo public scrutiny ahead of an IPO.
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