WeWork (OTC:WEWKQ) Chief Executive Officer David Tolley will step down on Tuesday less than eight months after accepting the role.
The resignation comes as the flexible workspace company plans to emerge from bankruptcy.
New York-based WeWork also expects to name a new CEO and board of directors on Tuesday.
The company filed for bankruptcy in November as it faced liabilities between $10 billion and $50 billion.
"When I joined WeWork just over one year ago, I knew the company faced real challenges in order to restructure its business to become financially and operationally sustainable," Tolley said in a statement on Tuesday.
"I'm delighted to have had the opportunity to lead our unique, incredible company into and out of this remarkably successful, transformational restructuring."
Also read: WeWork Loses Its Former NYC Headquarters To Rival Industrious
WeWork has cut its future lease obligations in half, Tolley said. The company also shed billions of dollars in debt and raised $400 million of additional equity capital.
"I'm deeply grateful for the opportunity I've had to contribute to driving our company forward, and would like to express my heartfelt thanks to all of the members of the WeWork team who've worked tirelessly with me over the last year," said Tolley, who joined WeWork's board of directors in February 2023.
During Tolley's tenure as CEO, WeWork renegotiated over 190 leases and exited over 170 unprofitable locations. It also reduced annual rent and tenancy expenses by over $800 million, and total future rent expenses by more than $12 billion (over 50%).
It also equitized $4 billion of prepetition indebtedness and secured $400 million of new equity capital to support operating investments and future strategic growth. Further, WeWork's management team reduced selling, general and administrative costs by over 30%.
In April, WeWork rejected a $650 million offer from co-founder and former owner Adam Neumann to buy the company back. His proposal did not offer a high enough price to win over lenders, Reuters reported.
WeWork estimates its post-bankruptcy equity to be worth about $750 million, down from its valuation of $47 billion in 2019.
Also read: WeWork's Former CEO Adam Neumann Proposes $600M Bid To Regain Control Of Bankrupt Company
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