Airbnb will layoff about 1,900 of its workers in order to save costs as the COVID-19 pandemic affects its finances. The stay at home order, in the wake of the pandemic, has led to mass cancellations of bookings.
This is one of the largest single layoffs by a Silicon Valley company since the beginning of the coronavirus outbreak.
Airbnb currently has 7,500 employees and the number it’s laying off represents about a quarter of this total.
“When you’ve asked me about layoffs, I’ve said that nothing is off the table. This is incredibly difficult to confront, and it will be even harder for those who have to leave Airbnb,” Airbnb CEO Brian Chesky said in a note to his employees.
Also Read:
– Airbnb To Halt Marketing, Hiring And Employee Bonuses As It Fights For Survival Amid Global Pandemic
– Apple Reveals New Date For Virtual Worldwide Developers Conference (WWDC) 2020
– Lyft Is Laying Off 17 Percent Of Its Employees In Bid For Survival
The restrictions on movement mean Airbnb has seen thousands of canceled reservations and dropping revenue. The company was on track for an initial public offering this year but has now reportedly postponed its plans.
Chesky in his letter said Airbnb’s revenue for 2020 will be less than half of its total earnings 2019, which was put at an estimated $4.8 billion.
The company has recently taken other measures to cut its spending while retaining hope that business will pick up again when people are ready to travel again. Chesky expects an eventual turnaround, he wrote, “we know Airbnb’s business will fully recover.”
He adds that Airbnb will narrow its focus, suspending projects related to transportation and television production. It will also scale back its efforts on marketing hotels and luxury properties.
For your daily dose of tech, lifestyle and trending content, make sure to follow Plat4om on Twitter @Plat4omLive, on Instagram @Plat4om, on LinkedIn at Plat4om, and on Facebook at Plat4om. You can also email us at info@techtalkwithtdafrica.com. Finally, don’t forget to subscribe to our YouTube channel HERE.