Months after former CEO Adam Neumann was ousted, WeWork has named real-estate industry veteran Sandeep Mathrani as its new chief executive. The move is being seen as a step to restructure the company following the exit of Neumann and failed IPO attempt. Mathrani is expected to officially join the company as the chief executive on February 18, 2020, and will replace Artie Minson and Sebastian Gunningham. Minson and Gunningham served as co-CEOs of the We Co., the parent company of WeWork. They were in charge of all the decision making after Neumann stepped down. The company said that they will continue to serve in the post through the transition period.
Mathrani will report to the executive chairman Marcelo Claure, the company said in a statement. Claure will continue to be in this role and he is expected to relocate to New York in the coming days. WeWork is headquartered in New York. Mathrani has previously worked as CEO of Brookfield Property Partners’ retail group. Before this, he worked as an executive at real estate firms like Vornado Realty Trust. WeWork board handled the search for a new chief executive without any external executive search firm. According to the people privy with the development, a couple of firms were initially under consideration.
Brookfield had earlier announced that Mathrani’s last day of work with the organization would be January 31. Mathrani is a famous figure in the commercial property and has the task of turning the troubled office space startup into a profit-making entity. SoftBank has taken over WeWork and already put 5 billion dollars into the company to pump up its equity investment due for next year. SoftBank has also offered to buy stocks worth USD 3 billion from existing investors of WeWork Company. WeWork got popularized by renting out shared workplaces. Shortly, it expanded from one office in New York to 500 locations around the globe. Ironically, the firm has lost around USD 900 million in 2019. The startup faced numerous criticisms over its operations. There were no women on its board and Neumann has several potential conflicts of interest with the investors.