Collaborative workspace startup WeWork has appointed Sandeep Mathrani as its chief executive officer (CEO) and board member. This comes against the backdrop of the departure in September of co-founder and CEO Adam Neumann and a failed attempt at an initial public offering.
Mathrani succeeds co-CEOs Artie Minson and Sebastian Gunningham, both of whom helped stabilize WeWork over the past few months. Minson and Gunningham will remain with the company through a transition period to ensure a smooth onboarding process, WeWork said.
SoftBank Corp.-funded WeWork, which is on the path of reorganization after a spate of events last year, said Mathrani will join on 18 February and report to executive chairman Marcelo Claure.
Mathrani most recently served as CEO of Brookfield Properties’ retail group.
“I am honoured 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.
WeWork said it has outlined a five-year strategic plan, built around six pillars, that guides a growth-led transformation plan.
It has implemented a five-year financial plan that positions the firm to achieve profitability on an adjusted Ebitda basis by 2021 and positive free cash flow in 2022.
The startup said it has a strong liquidity position that allows it to execute its strategic and financial plans on a fully-funded basis with access to additional liquidity of $2.5 billion, after executing its plan and becoming cash flow positive, for future growth.
WeWork said it has “made important changes to its operating model and organization structure with a clear governance structure to enable the proper execution of our plan with proper accountability throughout the organization."