WeWork, the global flexible office space provider once valued at $47 billion, has officially emerged from Chapter 11 bankruptcy. The company announced the completion of its global operational and financial restructuring, marking a significant milestone in its recovery. Alongside this announcement, WeWork introduced its new Board of Directors and appointed John Santora as the new Chief Executive Officer, effective June 12, 2024.
WeWork filed for Chapter 11 bankruptcy protection in November 2023, grappling with liabilities totaling $18.65 billion against assets of $15.06 billion. The company’s financial struggles were exacerbated by the COVID-19 pandemic, which led to a surge in vacancies, an economic slump, and a steep downturn in tech valuations.
John Santora, formerly Cushman & Wakefield’s Tri-State chairman, takes the helm as WeWork’s fourth permanent CEO in five years. He replaces David Tolley, who served as interim CEO starting in May 2023 before assuming the permanent role in October. Tolley’s tenure saw WeWork enter bankruptcy protection and initiate significant restructuring efforts. During this period, the company renegotiated over 190 leases and exited more than 170 unprofitable locations, effectively reducing its annual rent and tenancy expenses by over $800 million. Additionally, WeWork secured $400 million in new equity capital.
“WeWork is poised for a new chapter of growth and stability,” Santora stated in the company’s press release. “I am honored to lead this incredible team as we continue to innovate and redefine the flexible workspace market.”
WeWork’s new Board of Directors includes prominent figures from various sectors, emphasizing the company’s commitment to robust governance and strategic oversight. The board members are:
- Anant Yardi: Founder and Chief Executive Officer of Yardi Systems
- Adnan Ahmad: Advisor at Yardi Systems
- Arnie Brier: Senior Vice President and General Counsel at Yardi Systems
- Jason Yardi: Senior Director of Technology at Yardi Systems
- Daniel Ehrmann: Partner and Head of Restructuring at King Street
- Jagannath Iyer: Partner at SoftBank Investment Advisers
- John Santora: Chief Executive Officer of WeWork
Founded in 2010 by Adam Neumann and Miguel McKelvey, WeWork experienced rapid growth and substantial financing rounds, propelling it to a historic valuation. However, the company faced significant challenges following its failed IPO in 2019 and subsequent leadership changes. Neumann was ousted in 2019, shortly after the release of WeWork’s IPO prospectus.
Despite these setbacks, WeWork has now repositioned itself with a streamlined real estate portfolio, which currently includes approximately 45 million square feet across 600 locations in 37 countries. The company’s focus on downsizing and securing additional capital has laid a strong foundation for future growth.
