WeWork, which has a large presence in North Carolina, has announced that Sandeep Mathrani will join the Company as chief executive officer and a member of the board of directors. It will be effective.
Mathrani will report to Marcelo Claure, who will remain Executive Chairman. Mathrani brings to WeWork extensive leadership experience in real estate, with a proven track record of transforming companies and driving meaningful growth to create value for stakeholders. Mathrani’s deep real estate experience and skills are highly complementary with those of Claure.
Mathrani succeeds co-CEOs Artie Minson and Sebastian Gunningham, both of whom helped stabilize WeWork over the past several months. Minson and Gunningham will remain with the company through a transition period to ensure a smooth on-boarding process.
Back in November, WeWork was saved from financial collapse with a $9.5 billion bailout from Japanese tech conglomerate Softbank, which now owns 80 percent of the company. It had to slash nearly 20 percent of its workforce, embarking on a painful restructuring of its money-losing operation that doomed its stock market debut and left the office-sharing company on the brink of bankruptcy.
WeWork said it has laid off 2,400 of its approximately 12,500 employees to “create a more efficient organization.”
WeWork has a large presence in the Research Triangle Park region, as well as an operation in Charlotte. Back in July, it opened its second office in Durham – WeWork Durham.ID – at 300 Morris Street.
The 80,000-square-foot office occupies three floors in the newly constructed seven-story Morris building, boasting sweeping views of downtown Durham and the iconic American Tobacco tower. That same week, WeWork also launched its Raleigh office – WeWork One Glenwood at 1 Glenwood Ave. In total, WeWork has six offices scattered around North Carolina.
“Over the past 100 days since I joined WeWork, we have made tremendous progress strengthening the business,” Claure said in a statement. “As an important first step, we have recapitalized the business and have a plan that will provide us to in excess of $2.5 billion in liquidity to execute our growth plans. 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.”
Over the last 100 days, he said WeWork has:
- Outlined a clear five-year strategic plan, built around six pillars, that guides a growth-led transformation plan.
- Implemented a five-year financial plan that positions WeWork to achieve profitability on an adjusted EBITDA basis by 2021 and positive free cash flow in 2022.
- Established a strong liquidity position that allows the Company to execute its strategic and financial plans on a fully funded basis with access to additional liquidity of approximately $2.5 billion, after executing its plan and becoming cash flow positive, for future growth.
- 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
“During this time, we have led an exhaustive search to identify a collaborative partner who is dedicated to the future success of WeWork. Sandeep is that person,”
Claure continued. “He is the partner of choice with the right skills and experience as we work to execute WeWork’s transformation. He is a proven leader with turnaround expertise in the real estate industry, and we are thrilled to welcome him to WeWork. On behalf of the entire Board, I’d like to thank Artie and Sebastian for their leadership and dedication as co-CEOs during a challenging few months. Artie and Sebastian have helped provide stability and valuable insights as we repositioned the Company for its next phase of growth.”
Mathrani said: “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. 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 most recently served as CEO of Brookfield Properties’ retail group. Prior to that, he served as CEO of GGP Inc. for eight years, during which the company was recapitalized in November 2010, experienced eight years of growth, and in August 2018 was sold to Brookfield Property Partners. Prior to joining GGP in 2010, Mathrani was President of Retail for Vornado Realty Trust, where he oversaw the firm’s U.S. retail real estate division and operations in India comprised principally of office properties. During his tenure, he was responsible for stabilizing and growing the portfolio. Before that, he spent nearly a decade as Executive Vice President at Forest City Ratner, where he was tasked with starting and growing a new platform of retail properties across the five boroughs of New York City.
Mathrani serves on the executive board and the board of trustees for the International Council of Shopping Centers, the executive board and 2019 chair of the National Association of Real Estate Investment Trusts, as well as the board of directors for Host Hotels & Resorts, Inc.
Mathrani holds a Master of Engineering, Master of Management Science and Bachelor of Engineering from Stevens Institute of Technology in Hoboken, New Jersey.
WeWork provides members with space, community, and services through physical and virtual offerings. As of 2019 fourth-quarter close, WeWork had 740 locations across 140 cities and 37 countries, as well as 662,000+ memberships, including global enterprises. WeWork is committed to providing members around the world with a better day at work for less.