Sandeep Mathrani named Wework CEO

Wework, the troubled operator of shared office space, has named Sandeep Mathrani, a senior executive at Brookfield Properties, its new chief executive. The Indian-american executive replaces Artie Minson and Sebastian Gunningham, the co-chief executives.

Wework, the troubled operator of shared office space, has named Sandeep Mathrani, a senior executive at the commercial real estate company Brookfield Properties, as its new chief executive.

Mr. Mathrani, whose appointment was announced on Saturday, replaces Artie Minson and Sebastian Gunningham, the co-chief executives. Mr. Minson and Mr. Gunningham took over in September from Adam Neumann, the Wework co-founder whose growth-at-all-costs strategy brought the company to the brink of financial collapse last year.

In a statement, Mr. Mathrani said Wework had “redefined how people and companies approach work with an innovative platform, exceptionally talented team and significant potential if we stick to our shared values and maintain our members-first focus.”

The appointment of Mr. Mathrani, who is set to start on Feb. 18, would be an important part of Wework’s attempts to build a business that could sustain itself in the fast growing but highly competitive market for flexible office space. Mr. Mathrani has been chief executive of Brookfield’s retail division since August 2018, according to his Linkedin page. The naming of an experienced real estate executive is a clear indication that Wework is moving on from Mr. Neumann’s strategy of building a sprawling company with lofty aims that included transforming how people work and live together. He had promoted Wework as if it were a groundbreaking technology company set on upending its industry. The firm had also branched out well beyond office space, establishing sleek dormitories for working professionals and even a private school in Manhattan.

Wework withdrew its much anticipated initial public offering in September. Softbank, Wework’s largest outside shareholder, agreed in October to bail out the company.

Marcelo Claure, a senior Softbank executive, became Wework’s executive chairman and has been overseeing the company’s overhaul, which involves pulling back from certain markets, selling off noncore businesses and finding new ways to finance its operations. Mr. Claure will continue as executive chairman. Mr. Mathrani, who did not respond to a request for comment, faces some daunting challenges, not least the struggle to fill all the new locations that Wework expects to open in 2020. The company has said that it could open 600 spaces this year, almost doubling the size of its network.

Commercial real estate executives said Mr. Mr. Mathrani probably had strong relationships with large landlords, which might prove useful as Wework goes through its restructuring. In an interview in December with The New York Times, Mr. Claure said Wework might seek to renegotiate leases with building owners at some locations.