Airbnb, which was one of the hottest companies in the area, is making major job cuts and laying off 25% of its workforce.
CEO Brian Chesky announced in a memo that out of 7,500 Airbnb employees, nearly 1,900 are being let go due to a steep decline in bookings because of the pandemic. Airbnb operates a platform that lets users worldwide rent their homes and apartments to travelers.
The company will reduce investment in activities that do not directly support the core of its host community. Airbnb says it is pausing efforts in Transportation and Airbnb Studios, and will scale back investments in Hotels and Lux.
Airbnb was once valued at $31 billion but recently took in a $1 billion cash infusion that
The company said laid off employees in the US 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 3 years and 7 months, they will get an additional 4 weeks of salary, or 18 weeks of total pay. Outside the US, all employees will receive at least 14 weeks of pay, plus tenure increases consistent with their country-specific practices.
The company will also provide 12 months of health insurance via Cobra to laid off workers and also allow recently hired employees to vest stock, eliminating the one year requirement. All departing employees can also keep their work-issued Apple laptops.