Airbnb to lay off 1900 employees, sources say

Marco Green
May 6, 2020

Here are the main areas in which Airbnb is cutting costs.

In a memo to staff today, CEO Brian Chesky said the company's 2020 revenue is expected to be less than half of what it was past year, and that despite a recent capital infusion of $2 billion, Airbnb would need to reduce its investment in areas of its business that "do not directly support the core of our host community".

He continued, "We are collectively living through the most harrowing crisis of our lifetime, and as it began to unfold, global travel came to a standstill".

The firm is bracing for revenues to drop by half or worse this year.

The layoffs were first reported by The Information, which reported the news would be broken to employees by CEO Brian Chesky.

The company, which recently raised $2bn (£1.6bn) from investors to get it through the downturn, said it will provide at least 14 weeks of pay to affected staff.

Chesky outlined 4 key sectors where the company was either pausing its efforts or scaling back investment: Transportation, Airbnb Studios, Hotels and Luxe. Also, the company is lifting its one-year "cliff" for equity shares, allowing everyone hired in the last year to leave with some vested shares. The company had lined up bankers to lead the offering, which would test whether Airbnb could live up to its $31 billion private market valuation from 2017. And after netting $200 million in profit in 2018, the Wall Street Journal reported that 2019 spending led to the company seeing a $322 million loss in the first three quarters of previous year.

Other reports by Click Lancashire

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