WeWork’s CEO says the company is on track to be profitable by the end of the year

(Reuters) – WeWork chief executive Sandeep Mathrani said Wednesday that the co-working company is “fully on track” to reach profitability by the fourth quarter of this year and that its offices in China have almost returned to pre-pandemic levels.

Mathrani took the helm of WeWork in February to overturn the company after a disastrous period in which WeWork gave up its initial public offering, fired its founder Adam Neumann and risked bankruptcy.

In an interview at the Reuters Next conference, Mathrani said he expects many Americans will still want to work in an office environment despite the ongoing pandemic.

“We have seen mental health reasons for people who want to return to work [in the office], “He said.” I strongly believe that the office is an important part of daily life. “

WeWork locations in China “are back to practically 90% of pre-COVID levels from an employment perspective and a leasing and demand perspective, Mathrani said.

He added that WeWork currently has $ 3 billion in cash on its balance sheet, which is enough to take the company to 2022.

Reporting by Sheila Dang in Dallas, editing by Nick Zieminski