Sandeep Mathrani quits as WeWork CEO

Sandeep Mathrani is stepping down as Chairman, CEO and as director of WeWork, the leading global flexible space provider, effective May 26 to join Sycamore Partners as a director to lead its real estate activity.

Announcing the Indian American executive’s impending departure Tuesday, WeWork credited him with leading the Company through a “historic transformation” since joining as CEO in February 2020.

READ: WeWork’s new CEO Sandeep Mathrani puts Indian Americans into real estate space (February 3, 2020)

“Under Mathrani’s leadership, in the face of a global pandemic and challenging macroeconomic environment, WeWork has made significant progress in cutting costs, growing revenue across all business segments and establishing additional lines of revenue through new products including WeWork All Access and WeWork Workplace, while also restructuring and strengthening its balance sheet, and optimizing its global real estate portfolio,” it said.

Highlights of the company’s progress under Mathrani’s leadership include eliminating over $2.3 billion of recurring costs since 2019, reaching a revenue of $849 million in Q1 2023 from $593 million in Q2 2021 and enhancing liquidity with over $1 billion in new funding and new and rolled capital commitments.

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“It has been a privilege to lead WeWork during a notable transformation. Over the last three years we have restored the brand, grown revenue, right-sized the company, restructured our debt, and developed new product lines,” said Mathrani.

“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,” he said.

“On behalf of the WeWork Board I want to thank Sandeep for his tireless and diligent efforts over the last three years. WeWork continues to move forward in all aspects of the business thanks to his vision, spirit and leadership,” said Daniel Hurwitz, Chairman of WeWork’s Board of Directors.

“Mathrani will lead Sycamore’s real estate activity, improving and optimizing real estate often embedded within Sycamore’s target companies,” Sycamore Partners, a private equity firm based in New York, announced Tuesday.

READ: Top Indian American CEOs steering major US companies (September 5, 2022)

“We are thrilled to have Sandeep join the Sycamore Partners team as the firm has a long history of underwriting real estate while evaluating portfolio company opportunities. Given the current environment, we believe real estate will continue to be a significant source of value,” said Stefan Kaluzny, Managing Director of Sycamore Partners.

“Sandeep has invaluable operating experience over many cycles and I am confident that his real estate expertise will enhance Sycamore’s ability to realize value across our portfolio.”

Mathrani said, “I am honored to join Sycamore Partners. Sycamore Partners has an outstanding reputation for driving profitable growth across its leading retail and consumer brands.  I look forward to working closely with my new colleagues as we focus on building upon the firm’s existing capabilities.”

Before his stint at WeWork, Mathrani served as CEO of Brookfield Properties’ Retail Group and Vice Chairman of Brookfield Properties, according to his official profile.

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Prior to that, he served as CEO of GGP Inc for eight years, during which the company was capitalized in November 2010, experienced eight years of growth, and in August 2018 was sold to Brookfield Property Partners.

Prior to joining GGP in 2010, Mathrani was President of Retail for Vornado Realty Trust, where he oversaw the firm’s US retail real estate division and operations in India comprised principally of office properties.

During his tenure, he was responsible for stabilizing and growing the portfolio. Before that, he spent eight years as Executive Vice President at Forest City Ratner, where he was tasked with starting and growing a new platform of retail properties across the five boroughs of New York City.

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Mathrani currently serves as a member of the board of directors of Dick’s Sporting Goods, Tanger Factory Outlet Centers, Inc. and Bowlero.

Previously, Mathrani served as a member of the board of directors of Host Hotels & Resorts, Inc. and was the 2019 Chair of NAREIT.

Mathrani also served on the executive board and the board of trustees for the International Council of Shopping Centers (ICSC). He earned a Bachelor of Engineering, a Master of Engineering and a Master of Management Science from Stevens Institute of Technology.