Embattled office space provider Wework has said it will become free cash flow positive a year earlier than expected and will post its first ever $1bn revenue quarter this year.
The coworking firm said it will be free cash flow positive by 2022, and hopes to achieve free cash flow of more than $1bn by 2024 under chairman Marcelo Claure’s five-year turnaround plan.
Claure’s rescue plan will see three board members – Mark Schwartz, Steve Landman and Lew Frankfurt – step down.
Kirthiga Reddy, who was appointed to the board last week, is to replace Ron Fisher as a representative of Softbank Vision Fund, the company said.
Incoming chief executive Sandeep Mathrani will take up his role on 18 February.
The company also set out some other financial and operational targets, including earnings before interest, tax, depreciation and amortisation (Ebitda) becoming positive by next year, and reaching 1m memberships by 2023.
Read more: Softbank’s Wework financing talks stall
The company said it expects to have additional liquidity of $2.5bn to $3bn for future growth following the implementation of the turnaround plan.
Claure said: “We will continue to improve the company’s financial position, implement our new operating model and pursue disciplined growth on our path to adjusted Ebitda profitability by next year.”