Co-sharing workspace major WeWork has named Sandeep Mathrani as the new CEO of the company.
Indian-American real estate veteran, Mathrani, who served as CEO of Brookfield Properties, will be effective from February 18. He will also be a member of the company’s Board of Directors, WeWork said.
Mathrani will report to Marcelo Claure, who will remain the Executive Chairman of WeWork
Mathrani’s appointment comes at a crucial time when WeWork is trying to stabilise its business following its failed attempt to go public last year and the departure of the its Co-founder and former CEO Adam Neumann.
Following the setback which led to dramatic fall in its valuation, Japan-based technology investor SoftBank took 80% ownership of the company and infused into it $5 billion in new financing.
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“I am honored to be joining WeWork at this pivotal time in its history. The company has redefined how people and companies approach work with an innovative platform, exceptionally talented team and significant potential if we stick to our shared values and maintain our members-first focus,” Mathrani said in a statement.
“I am grateful for the confidence Marcelo and the Board have placed in me and look forward to partnering with Marcelo and the very talented employees at WeWork.”
Mathrani succeeds co-CEOs Artie Minson and Sebastian Gunningham. Minson and Gunningham will remain with the Company through a transition period to ensure a smooth onboarding process, WeWork said.
“Over the past 100 days since I joined WeWork, we have made tremendous progress strengthening the business. As an important first step, we have recapitalised the business and have a plan that will provide us access to in excess of $2.5 billion in liquidity to execute our growth plans,” said Claure who is part of the SoftBank Group.
“With a strong liquidity position in place, we have also established a five-year, growth-led transformation plan that we believe will position WeWork to achieve profitability on an adjusted EBITDA basis by 2021 and positive free cash flow in 2022. We continue to make important changes to implement a strong management team that better enables the Company to execute,” Claure added.
(With agencies input)