- WeWork named real estate industry executive Sandeep Mathrani as its new CEO, the company announced on Sunday, after failing to land anyone post-Neumann Exit.
WeWork named real estate industry executive Sandeep Mathrani as its new CEO, the company announced Sunday, in a move to turn around the embattled real estate startup after its failed IPO attempt and the ouster of former CEO Adam Neumann last year.
Mathrani has been employed in the real estate industry for over two decades, and most recently was the CEO of the retail division of Brookfield Property. He adds real estate experience after the former CEO of WeWork has described the company as a kind of technology startup, which leases out office space to startups. He will replace the two former WeWork executives Artie Minson and Sebastian Gunningham who served as temporary co-CEOs after Neumann stepped down in September 2019. Mathrani was recruited by the newly installed executive chairman of WeWork, Marcelo Claure, who came on as part of a bailout deal with Softbank, its largest investor, the Wall Street Journal reported.
“At this pivotal time in its history I am honored to be joining WeWork,” Mathrani said in a statement. “The Company has redefined how people and business strategies operate with a creative platform, an exceptionally talented team, and tremendous opportunity if we stick to our shared values and retain our members-first orientation.”
WeWork was once one of the world’s highest-valued start-ups, but the company imploded last year after investors challenged its corporate governance and finances ahead of its customers.
The public offering of IPO was eventually shelved and the eccentric CEO of WeWork at the time, Adam Neumann, stepped down after media reports revealing his unusual style of management and questionable business decisions.
WeWork has a five-year plan to make itself profitable by 2021 with Softbank in the driver’s seat post-bailout. That plan included last year’s mass layoffs and may involve selling more non-core business assets (the company Teem and its stake in The Wing last month have already sold off business management software).
WeWork shelved plans for its initial public offering owing to investor worries about its company model, valuation and governance standards, allowing Neumann’s shares to have twenty times the voting authority of normal shareholders.
Before this announcement, Neumann was subjected to pressure from board members linked to significant investor SoftBank as per individuals with an understanding of the issue.
Eventually, Adam Neumann stepped down as CEO and is serving as the board’s non-executive chairman.