- WeWork is putting the private plane Adam Neumann used up for sale, Business Insider has learned.
- The company bought the luxurious Gulfstream G650 for $60 million last year.
- Some employees told Business Insider the optics of the Gulfstream upset staff, who couldn’t get promised bonuses and raises despite the company spending millions on the plane and parties. It also raised red flags with investors.
- WeWork is moving to divest some of its assets, including other businesses it purchased, as the company tries to better position itself for an initial public offering.
- For more stories about WeWork, click here.
WeWork is selling the luxurious plane co-founder Adam Neumann used to travel the world, a symbol of the company’s corporate governance issues that in part have derailed its initial public offering.
The company bought the Gulfstream G650 for $60 million last year. Some investors said the private plane was a corporate governance red flag in the lead-up to the company’s IPO, according to a source familiar with the matter.
On Tuesday, Neumann said he was stepping down as WeWork’s CEO, saying intense public scrutiny of him was a “distraction.”
The company’s two new CEOs, Artie Minson and Sebastian Gunningham, are looking to offload three businesses it had purchased in recent years: Managed by Q, Conductor, and Meetup.
Multiple employees told Business Insider in recent weeks that staff was frustrated by the company spending so much on the plane and lavish parties, while managers cited lack of resources when they denied promised bonuses and salary raises.
“The company was spending $60 million on an airplane and I can’t get a decent raise? It felt like it was ‘We over me,’ unless me was Adam. And We was Adam,” said one mid-level employee.
Another employee who worked on the plane’s renovations said two bedrooms were added. The jet has multiple televisions and Apple TV’s, and a central computer to run all media. Staff “had to download thousands of TV shows and movies on it for the kids to watch. We literally sat at work for three days straight doing this.”
The other modifications were cosmetic, the employee said.
A third employee said the plane functioned as a meeting space for Neumann. Because of his busy schedule, employees struggled to meet him in the office, so he often hosted meetings on the jet.
“I know of instances where people got on the plane, flew across the country, and flew commercial home,” said the executive.
The Gulfstream G650 is considered one of the most luxurious and popular private jets available now. The plane can fly up to 7,500-nautical miles, meaning flying from London at near its top speed, it can reach New York and Beijing. At a slower, more fuel-efficient rate, it can get to Buenos Aires and Los Angeles.
It’s a popular jet among the rich and famous, as well as executives of global corporations. Tesla CEO Elon Musk and Starbucks CEO Howard Schultz are among the jets owners, as was late Apple CEO Steve Jobs. More than 350 of the plane have been built.
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