Airbnb, an online marketplace for homestays said it has laid off near 1900 employees, about 25 percent of the workforce of the company.
In a note sent to Airbnb employees, Airbnb Co-Founder and CEO Brian Chesky said, “Out of our 7,500 Airbnb employees, nearly 1,900 teammates will have to leave Airbnb, comprising around 25% of our company. Since we cannot afford to do everything that we used to, these cuts had to be mapped to a more focused business. “
These decisions are not a reflection of the work from people on these teams, and it does not mean everyone on these teams will be leaving us. Additionally, teams across all of Airbnb will be impacted. Many teams will be reduced in size based on how well they map to where Airbnb is headed, he added.
Due to the Covid19, global travel came to a standstill and Airbnb’s business has been hit hard, with revenue this year forecasted to be less than half of what they earned in 2019.
However, the company recently raises $2 billion in the capital and now focuses to cut costs to save for future operations.
In the note, Brian also mentioned that he doesn’t know exactly when travel will return but said when it returns, it will look different.
While we know Airbnb’s business will fully recover, the changes it will undergo are not temporary or short-lived. Because of this, we need to make more fundamental changes to Airbnb by reducing the size of our workforce around a more focused business strategy.
On the financial part, Airbnb said employees who are leaving in the US will receive 14 weeks of base pay, plus one additional week for every year at Airbnb. Outside the US, all employees will receive at least 14 weeks of pay, plus tenure increases consistent with their country-specific practices.