Airbnb Inc. is cutting 25 percent of its workforce, amounting to nearly 1,900 employees, the company confirmed, according to a report by MoneyControl. Employees who were laid off in the United States will get 14 weeks of base pay plus one additional week for every year at Airbnb, the company said.
Airbnb’s business has been hit very hard
The COVID-19 pandemic has impaired travel across the world which has had a direct impact on the company’s functioning. Earlier this year, the organization confirmed that it was allocating $250 million to help offset losses incurred by hosts.“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.
To save funds the company ceased all its marketing activities. The move saved $800 million in 2020. Employees were informed that its founders would forego their salary for the next six months while top executives would take a 50 percent cut. Last month Airbnb confirmed that private equity firms Silver Lake and Sixth Street Partners would invest $1 billion in the startup, raising its cash reserves to around $4 billion.