The WeWork co-founder Adam Neumann has been stripped of his multibillionaire status as it has emerged that losses at the UK subsidiaries of the embattled office space company soared tenfold to £76m last year.
Neumann, who last month stepped down as chief executive of WeWork following its botched bid to list on the US stock market, was estimated to be worth $4.1bn (£3.2bn) in March when he appeared on Forbes’ list of the world’s richest people.
On Thursday, Forbes slashed $3.5bn off that estimate following the failed attempt to complete an initial public offering amid mounting concerns over the financial viability of the WeWork business.
Neumann’s estimated net worth has dropped to $600m due to the sudden decline in the value of his 18% stake in the nine-year-old firm. The business had been estimated to be worth some $47bn when the intended float was first unveiled, making it one of the world’s most valuable private companies. Neumann had cashed out $700m for himself, from share sales and loans, ahead of its proposed float.