WeWork eyes another IPO effort

Mathrani says company is on its way to profitability next year

National /
Oct.October 29, 2020 01:00 PM
Sandeep Mathrani (WeWork)

Sandeep Mathrani (WeWork)

Like many around the world, WeWork is looking to forget this year and pick up where it left off in 2019.

The office-space company is going to revisit plans for an initial public offering in 2021, when it expects to turn a profit, Bloomberg News reported.

“I’m a big believer in one step at a time so let’s hit profitable growth first, and we’ll then revisit the IPO plan,” company CEO Sandeep Mathrani told a group of reporters in India Wednesday during a Zoom conference call from New York.

Mathrani joined WeWork in February after the company abandoned plans for an IPO late last year. The former GGP executive oversaw an effort to turn around the company by cutting costs. WeWork let go about a third of its workforce, or more than 8,000 employees, which led to about $1 billion in annual savings.

Mathrani said the company is “100 percent done with rightsizing.”

The company is also about 75 percent complete with a review of its global portfolio.

“In Q1, we were at 66 percent occupancy; with the cost cuts that would be where we see cash coming in,” the CEO said. “We will get to that level by next year.”

The SoftBank-backed company still faces some significant challenges, though. There are big questions surrounding how the global pandemic will impact demand for WeWork’s space. Ratings agency Fitch recently downgraded WeWork’s credit rating. [Bloomberg] – Rich Bockmann


Related Articles

arrow_forward_ios
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
WeWork CEO Adam Neumann (Credit: Getty Images and iStock)

WeWork’s side businesses are fizzling

WeWork’s side businesses are fizzling
Sarah Pontius (Credit: Union College)

Another head rolls at WeWork

Another head rolls at WeWork
Compass CEO Robert Reffkin (Getty; iStock)

Compass eyes IPO in 2021

Compass eyes IPO in 2021
Airbnb CEO Brian Chesky (Getty)

Inside Airbnb’s IPO pitch

Inside Airbnb’s IPO pitch
WeWork CEO Sandeep Mathrani (Getty)

WeWork losses continue but firm sees glimmer of hope

WeWork losses continue but firm sees glimmer of hope
Jennifer Berrent (Getty)

Chief legal officer Jennifer Berrent to leave WeWork

Chief legal officer Jennifer Berrent to leave WeWork
WeWork CEO Sandeep Mathrani (Wikimedia)

WeWork tells members you must pay rent

WeWork tells members you must pay rent
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...