WeWork CEO Mathrani to step down after joining Sycamore Partners as director
Reuters
Published May 16, 2023 04:45PM ET
Updated May 16, 2023 05:31PM ET
(Reuters) -WeWork Inc on Tuesday said that Sandeep Mathrani would step down as the workspace provider's chief executive officer, effective May 26, while Sycamore Partners named him as a director to lead its real estate activity.
Mathrani was named WeWork CEO in 2020 and tasked with the company's turnaround following a botched IPO attempt and amid rising investor concerns over corporate governance standards.
WeWork went public in 2021 under his leadership, navigated the COVID-19 pandemic, cut costs, boosted revenue across business segments, and restructured and strengthened the balance sheet.
The company, which benefited from a pandemic-driven shift to flexible work outside traditional offices, has been impacted by mass layoffs across the tech sector over the past nine months.
WeWork in March struck deals to cut its debt by about $1.5 billion and extend the date of some maturities to preserve cash as it struggles to turn a quarterly profit since going public.
The company, which said Mathrani's resignation was not a result of any disagreement, named board member David Tolley as interim CEO.
Mathrani had succeeded co-CEOs Sebastian Gunningham and Artie Minson in 2020 and became the chairman of the company in March 2022 after Marcelo Claure vacated the role.
WeWork said lead independent director Daniel Hurwitz would serve as chairman of the board and head a special committee that will search for a permanent CEO.
WeWork shares have fallen about 76% so far this year, resulting in a market capitalization of $745.42 million, according to Refinitiv data. The company was valued at as much as $47 billion in 2019.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.