Airbnb cuts 25% of workforce
Airbnb is laying off a nearly 1,900 employees, or a quarter of its global workforce, as it tries to weather the near total halt of travel amid the coronavirus pandemic.
Why it matters: Despite raising $2 billion in debt and equity last month, cutting marketing expenses and freezing hiring, the company couldn't escape having to cut a significant number of jobs.
- "Airbnb’s business has been hit hard, with revenue this year forecasted to be less than half of what we earned in 2019," CEO Brian Chesky said in a company email announcing the layoffs.
- For severance, employees will receive 14 weeks of pay, plus an additional amount based on their tenure and location. They will also receive extended health care coverage (for 12 months in the U.S. and through the end of the year elsewhere), and the company is removing the first-year minimum to vest their equity if they joined in the past year.
- The layoffs were not a condition to Airbnb's recent financings, per a spokesperson.
- Questions also remain about the company's plans to go public this year.
Go deeper: CEO Brian Chesky's full statement