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WeWork: Too Much Charisma, Too Little Leadership?
WeWork Companies LLC (WeWork), founded in 2010 by Adam Neumann and Miguel McKelvey, had redefined the global real estate industry with its innovative approach to providing co-working spaces. By 2019, the company’s valuation had skyrocketed to $47 billion, and its service offerings had extended to co-living and education. However, mounting financial losses, debt, and revelations about Neumann’s extravagant lifestyle and poor governance practices led to a failed initial public offering and forced Neumann to step down as chief executive officer (CEO) amid eroded stakeholder confidence. Sandeep Mathrani, the experienced real estate executive who was appointed CEO in February 2020, faced a crucial question: beyond rehabilitating the company’s financial prospects, how was he to restore employee morale and revamp confidence in its communal culture?