May 5, 2020 - Economy & Business

Airbnb cuts 25% of workforce

Photo: Yuriko Nakao/Getty Images

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

Go deeper

Updated 6 mins ago - Politics & Policy

Trump says RNC is looking outside of North Carolina for convention site

North Carolina Gov. Roy Cooper in 2018. Photo: Sara D. Davis/Getty Images

President Trump tweeted on Tuesday night that because of ongoing coronavirus restrictions in North Carolina, the Republican Party will be "forced to seek another state" to host its convention in August.

The big picture: The late-night tweet came after North Carolina Gov. Roy Cooper (D) told convention organizers earlier Tuesday that Republicans should plan for a "scaled-down convention with fewer people, social distancing and face coverings" given the impact of the pandemic.

Updates: George Floyd protests continue past curfews

Police officers wearing riot gear push back demonstrators outside of the White House on Monday. Photo: Jose Luis Magana/AFP via Getty Images

Protests over the death of George Floyd and other police-related killings of black people continued Tuesday across the U.S. for the eighth consecutive day, prompting a federal response from the National Guard, Immigration and Customs Enforcement and Customs and Border Protection.

The latest: Even with early curfews in New York City and Washington, D.C., protesters are still out en masse. Some protesters in D.C. said they were galvanized by President Trump's photo op in front of St. John's Church on Monday and threat to deploy U.S. troops in the rest of country if violence isn't quelled, NBC News reports.

Updated 1 hour ago - Politics & Policy

Trump backs off push to federalize forces against riots

Photo: Brendan Smialowski /AFP via Getty Images

A day after threatening to federalize forces to snuff out riots across the country, the president appears to be backing off the idea of invoking the Insurrection Act, sources familiar with his plans tell Axios.

What we're hearing: Aides say he hasn’t ruled out its use at some point, but that he's “pleased” with the way protests were handled last night (apart from in New York City, as he indicated on Twitter today) — and that for now he's satisfied with leaving the crackdown to states through local law enforcement and the National Guard.