NEWS
Airbnb to Lay Off 25 Percent of its Workforce
Source: Airbnb
The coronavirus pandemic has seen tourism come to a grinding halt and the knock-on effect is leading to layoffs within the industry with everything from airlines and theme parks to hotels and cruise lines whittling down the number of employees they can afford to keep.
In an internal memo obtained by numerous media outlets, Airbnb told staff they would be laying off approximately 25 percent of its employees, with co-founder and CEO Brian Chesky writing, “Airbnb’s business has been hit hard.”
“Some very sad news. Today, I must confirm that we are reducing the size of the Airbnb workforce,” Chesky told employees. “We are collectively living through the most harrowing crisis of our lifetime, and as it began to unfold, global travel came to a standstill.”
“Airbnb’s business has been hit hard, with revenue this year forecasted to be less than half of what we earned in 2019,” Chesky shared. “In response, we raised $2 billion in capital and dramatically cut costs that touched nearly every corner of Airbnb.”
“We have great people leaving Airbnb, and other companies will be lucky to have them,” Chesky revealed of the difficult decision to let staff go, before sharing “Employees in the U.S. will receive 14 weeks of base pay, plus one additional week for every year at Airbnb. Tenure will be rounded to the nearest year. For example, if someone has been at Airbnb for three years and seven months, they will get an additional four weeks of salary, or 18 weeks of total pay.”
Chesky revealed Airbnb also plans to help those laid-off by offering placement support, career advice and assistance through an alumni directory.
