June 11 (Reuters) - WeWork ( WEWOQ ) CEO David Tolley stepped down

after the flexible workspace provider emerged from bankruptcy on

Tuesday, bookending a months-long restructuring process that

featured a strategy revamp and exits from several locations.

The company named commercial real estate industry veteran

John Santora as its new top boss. He most recently served as

Tri-State chairman at global real estate services firm Cushman &

Wakefield.

Once the most valuable U.S. startup, WeWork ( WEWOQ ) expanded at a

breakneck pace but racked up steep losses due to expensive

leases and a sharp pandemic-driven slump in demand, before

filing for bankruptcy protection in November 2023.

WeWork ( WEWOQ ) received approval from a U.S. bankruptcy judge for a

restructuring plan late last month, allowing it to eliminate $4

billion in debt and hand over its equity to a group of lenders

and real estate technology company Yardi Systems.

Tolley joined WeWork ( WEWOQ ) in February 2023 as a board member. He

became CEO in October, leading the company through a tumultuous

period that saw major operational and financial revamps.

During his tenure, WeWork ( WEWOQ ) downsized its real estate

portfolio sharply, renegotiated more than 190 leases, exited

over 170 unprofitable locations, and cut annual rent and tenancy

expenses by over $800 million.

It also secured $400 million in new equity capital to

support its future growth, while cutting down its expenses by

more than 30%.

The startup was one of the biggest bets of SoftBank Group ( SFTBF )

, which owned around 71% stake last November, even

though over the years it wrote down most of its investment. It

is set to retain a minority stake on account of the loans it

provided.

WeWork ( WEWOQ ) rebuffed a $650 million offer in April from

co-founder and former owner Adam Neumann, saying his proposal

did not offer a high enough price to win over lenders.

The beleaguered firm estimated its post-bankruptcy equity to

be worth about $750 million, a far cry from the $47 billion

valuation it commanded in 2019.