Klaus Schwab to Step Down as World Economic Forum Chair Amid Workplace Culture Probe

Klaus Schwab, the 86-year-old founder of the World Economic Forum (WEF), will step down as chairman of its board of trustees by January 2027, concluding his five-decade leadership of the organization behind the annual Davos summit. The announcement follows a monthslong investigation into workplace culture at the WEF, prompted by allegations of discrimination and misconduct detailed in a 2024 Wall Street Journal report.

Allegations and Investigation The WEF’s board launched an external probe after the Journal uncovered claims of a toxic workplace environment, including racism and sexism, with some allegations originating from staffers on the team responsible for the Forum’s Global Gender Gap Report. Employees described inconsistent leadership under Schwab, including pressure to prioritize commercial interests over editorial independence in publications like the Forum’s former magazine World Link. While the investigation found no legal violations or substantiated misconduct against Schwab personally, it identified broader leadership shortcomings.

Leadership Exodus Schwab’s departure coincides with exits from other senior executives, including Chief Legal Officer Nicola Port, technology head Malte Godbersen, and Schwab’s son Olivier, a managing director. The shakeup reflects efforts to overhaul governance at the Geneva-based organization, which Schwab said must “recover its sense of mission” after recent turmoil.

A Legacy Under Scrutiny Schwab, who founded the WEF in 1971, transformed Davos into a global stage for economic and political dialogue, attracting heads of state, CEOs, and activists. However, his leadership style drew criticism, with former employees citing contradictions between the Forum’s public advocacy for inclusivity and its internal practices. The WEF has denied the allegations, stating it upholds “the highest standards of governance” and employs “confidential reporting channels” for workplace concerns.

Transition Timeline Schwab relinquished his role as executive chairman in May 2024 but remained nonexecutive chair. He will stay in his current position until a successor is appointed, with the transition expected to conclude by early 2027. Børge Brende, the WEF’s president and a former Norwegian foreign minister, is overseeing day-to-day operations.

What Comes Next The Forum faces pressure to align its workplace culture with its public messaging on equity, particularly as it prepares for its next high-profile Davos gathering. Schwab’s departure marks the end of an era for an organization that has shaped global economic policy—and now seeks to redefine itself in the wake of internal reckoning.

Developed with details from Financial Times, Wall Street Journal, and Reuters reports.