Airbnb announces 25 per cent job cuts as COVID-19 lockdown hits travel
Airbnb Inc has announced job cuts of at least 25 per cent of its workforce as the COVID-19 pandemic has hit the travel industry hard. According to the announcement, nearly 1,900 employees will be sacked, the home rental startup said on Tuesday. “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. 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 the outbreak of coronavirus, most of the countries in the world are on lockdown. Public transport, including air travel, has been suspended in many nations, to contain the spread of COVID-19, by forcing people to stay home.
Reuters reported about the move earlier on Tuesday.
With millions of tourists canceling plans for vacations, work trips and family visits, Airbnb earlier this year said it was allocating $250 million to help offset losses incurred by hosts.
In late March, it suspended its marketing activities to save $800 million in 2020 and informed workers that its founders will take no salary for the next six months while top executives would take a 50 per cent cut.
Last month, Airbnb said private equity firms Silver Lake and Sixth Street Partners would invest $1 billion in the startup, raising its cash reserves to around $4 billion.
The fund would be used to attract more hosts or homeowners who list their properties for rent on its platform, Airbnb had said.
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