AIRBNB Inc is laying off 25% of its workforce, or nearly 1,900 employees, the home rental startup said yesdday, as the Covid-19 pandemic brings global travel to a near standstill.
“Airbnb’s business has been hit hard, with revenue this year forecasted to be less than half of what we earned in 2019,” founder Brian Chesky said in a memo to employees.
Reuters reported about the move earlier yesterday. The laid off employees in the United States will get 14 weeks of base pay plus one additional week for every year at Airbnb, the company said.
With millions of tourists canceling plans for vacations, work trips and family visits, Airbnb earlier this year said it was allocating US$250 mil to help offset losses incurred by hosts.
In late March, it suspended its marketing activities to save US$800 mil in 2020 and informed workers that its founders will take no salary for the next six months while top executives would take a 50% cut.
Last month, Airbnb said private equity firms Silver Lake and Sixth Street Partners wou inldvest US$1 bil in the startup, raising its cash reserves to around US$4 bil.
The fund would be used to attract more hosts or homeowners who list their properties for rent on its platform, Airbnb had said. – May 6, 2020, Bernama
