Embattled real estate-tech startup WeWork has named Indian real estate executive Sandeep Mathrani to serve as its new CEO and board member. The appointment will be effective on 18th February.
Mathrani is the former CEO of the Brookfield Properties, a New York-based global real estate Services Company.
“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,” said Mathrani.
Mathrani will replace Artie Minson and Sebastian Gunningham who have been serving as co-CEOs of WeWork parent We Co since Adam Neumann was ousted by private equity firm SoftBank following an unsuccessful IPO attempt.
Marcelo Claure who is also the COO of the SoftBank Group said that since taking over, the firm’s interim management has recapitalized the business which now has access to over $2.5 billion in liquidity to execute its 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,” Claure said.
WeWork has put in place a 5-year transformation plan which positions the company to achieve profitability on an adjusted EBITDA basis by 2021.
The firm’s Community Adjusted EBITDA has been termed a controversial metric by some analysts. In addition to the usual interest, taxes, depreciation, and amortization, the metric includes net income before “building and community-level operating expenses,” and has been criticized as an extremist form of creative accounting.