The CEO tasked with turning WeWork Inc (NYSE:WE) around after its failed 2020 IPO is stepping down, the company announced.
Sandeep Mathrani, who joined the company in 2020, will leave WeWork on May 26, as private equity firm Sycamore Partners tapped him as a director to lead its real estate operations.
WeWork would ultimately go public in 2021 with Mathrani at the helm, and under his leadership revenue managed to grow across business segments.
"It has been a privilege to lead WeWork during a notable transformation," Mathrani said in a statement. "Over the last three years we have restored the brand, grown revenue, right-sized the company, restructured our debt, and developed new product lines. I am grateful to have been able to lead such a resilient group of employees who through it all stepped up to meet and beat every challenge. I am firm in my belief that this is WeWork’s moment."
Investors haven’t taken the news well, as WeWork shares are down more than 13% Wednesday morning to $0.30. That’s after shares have already fallen more than 75% in 2023.
Director David Tolley has been named interim CEO, the company said. Tolley takes over a restructuring process that saw WeWork reach a deal to convert roughly $1 billion of major investor SoftBank Group Corp's unsecured notes into equity.
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