- Former WeWork CEO Adam Neumann met with former Starbucks CEO Howard Schultz in 2018, in response to the brand new e-book “Billion Dollar Loser” by Reeves Wiedeman.
- On the time, Neumann was involved in increasing into retail, and Schultz gave him recommendation: cease rising for six months so as to appropriate issues inside your online business earlier than they arrive again to hang-out you.
- Executives inside WeWork had been asking Neumann for precisely that: WeWork wanted to iron out kinks with gross sales, leasing, and development, Wiedeman reviews.
- Following the assembly, nevertheless, Neumann gave his opinion on Schultz’s recommendation to some WeWork workers: “F— that.”
- Representatives for Neumann and Schultz didn’t instantly reply to Enterprise Insider’s request for touch upon the assembly.
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Again in 2018, co-working startup WeWork was one of the vital beneficial personal firms on this planet, intent on progress in any respect prices. It is cofounder, Adam Neumann, was pushing the corporate to increase into retail.
That ambition is what led Neumann to schedule a gathering with former Starbucks CEO Howard Schultz, in response to Reeves Wiedeman’s new book “Billion Dollar Loser,” which chronicles the rise and fall of WeWork.
Neumann, who at that time was nonetheless CEO of WeWork, flew to Seattle in early 2018 to fulfill with Schultz about WeWork’s retail ambitions. Schultz gave Neumann a chunk of recommendation primarily based on his personal expertise, in response to Wiedeman: After Schultz took over as CEO and Starbucks began to develop quickly, Schultz mentioned he wished he’d paused that progress for six months so as to deal with some core points inside Starbucks’ enterprise, points that will come again to hang-out the corporate later.
In line with Wiedeman, at that cut-off date, executives inside WeWork had been asking Neumann for precisely that: the chance to decelerate progress so as to create a system for gross sales and for leasing new areas, and to higher set up the corporate’s development course of.
They had been additionally asking Neumann to cease making an attempt to increase into new enterprise ventures — like retail.
Neumann selected to not heed Schultz’s recommendation, nevertheless. As Wiedeman reviews within the e-book, on the best way again from Seattle aboard a non-public jet, Neumann repeated what Schultz had advised him to the WeWork workers current and gave an opinion on the recommendation: “F— that.”
Representatives for Neumann and Schultz didn’t instantly reply to Enterprise Insider’s request for touch upon the assembly.
Neumann was CEO of WeWork from the corporate’s launch in 2010 till late 2019, when he stepped down from the role and from the corporate’s board of administrators as a part of a buyout take care of SoftBank. Neumann’s departure got here after WeWork was rocked by controversy following the submitting of its paperwork for an preliminary public providing — the submitting revealed staggering losses topping $1.6 billion.
The revelations led WeWork to place its IPO on maintain, shut its instructional arm, WeGrow, and try and promote a few of the companies it had beforehand acquired.
Quickly after, the highlight fell on Neumann, who was revealed to be entangled in a web loans and conflicts of interest, together with household involvement in WeWork’s enterprise. An exposé by The Wall Street Journal reported that Neumann had created a hard-partying tradition inside WeWork, together with medication and ingesting, and that he and his spouse, Rebekah, who was additionally concerned in WeWork, had been recognized for his or her cutthroat administration kinds.