WeWork announced that Sandeep Mathrani will join the company as CEO and member of its Board of Directors as part of the restructuring of the company after the departure of its founder Adam Neumann after several controversies.
From February 18th Mathrani will report to Marcelo Claure, who will remain as Executive President. The new CEO will replace Artie Minson and Sebastian Gunningham who had taken office after Neumann left.
“In the last 100 days since my integration with WeWork, we have made great progress in strengthening the business. As an important first step, the business was recapitalized, and we put together a plan that will help us exceed $2.5 billion in liquidity to execute the development goals. With strong liquidity, we also established a five-year sustainable growth transformation project, which we believe will drive WeWork to achieve profitability on an EBITDA basis adjusted to 2021 and a positive cash flow in 2022,” Claure said in a press co-release
2019 was a very complex year for WeWork. The chain of coworking spaces obtained a loan of 1.75 billion dollars with Goldman Sachs to obtain funds in January and avoid running out of cash. Also, his co-founder Adam Neumann was overthrown in September and replaced by two co-CEOs, Sebastian Gunningham and Artie Minson, as part of a series of measures to restore confidence in the company and its leadership. A presentation in August revealed Neumann’s network of loans, real estate agreements and family involvement with the company, which eventually led to his dismissal.
Sandeep Mathrani served as CEO of the Brookfield Properties group. Prior to that, he was CEO of GGP Inc. for 8 years, during which the company recapitalized in November 2010, living years of growth and, in August 2018, was sold to Brookfield Properties Partners.