Adam Neumann, who heads We Co., parent of office-subleasing company WeWork, is expected to step down as CEO but stay on as non-executive chairman, people familiar with the matter told The Wall Street Journal.

Sebastian Gunningham, a former Amazon.com  (AMZN) - Get Report executive, and We Chief Financial Officer Artie Minson, formerly of AOL and Time Warner Cable, will become interim co-CEOs, a company spokesperson told CNBC.

Neumann also will cede majority control of We and his voting shares will be reduced to 3 to 1 from 10 to 1, the Journal reported.

WeWork's parent delayed plans for an initial public offering after investors balked at a number of issues surrounding the company and Neumann, including his control of the company, possible conflicts of interest, and personal behavior.

"As co-founder of WeWork, I am so proud of this team and the incredible company that we have built over the last decade," Neumann said in a statement to Business Insider.

He added: "While our business has never been stronger, in recent weeks, the scrutiny directed toward me has become a significant distraction, and I have decided that it is in the best interest of the company to step down as chief executive.

"Thank you to my colleagues, our members, our landlord partners, and our investors for continuing to believe in this great business."

We's IPO was highly touted - and hugely valued, at as much as $47 billion - after the company drew investments including several billion dollars from the Japanese investing giant SoftBank (SFTBY) .

But WeWork has been posting deep losses, estimates of the company's potential valuation have dropped sharply, and investor interest in the IPO has flagged.

The Information reported that We executives and bankers are discussing cost cuts, including the prospect of cutting a third of the workforce, as many as 5,000 people.