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Airbnb cuts 1,900 jobs as coronavirus hits home rentals

Stock Markets May 05, 2020 05:50PM ET
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© Reuters. FILE PHOTO: A woman talks on the phone at the Airbnb office headquarters in the SOMA district of San Francisco

By Munsif Vengattil, Joshua Franklin and Anirban Sen

(Reuters) - Airbnb Inc is laying off 25% of its workforce, or nearly 1,900 employees, the home rental startup said on Tuesday, as the COVID-19 pandemic brings global travel to a near standstill.

"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.

Reuters reported about the move earlier on Tuesday. The laid off employees in the United States will get 14 weeks of base pay plus one additional week for every year at Airbnb, the company said.

With millions of tourists canceling plans for vacations, work trips and family visits, Airbnb earlier this year said it was allocating $250 million to help offset losses incurred by hosts.

In late March, it suspended its marketing activities to save $800 million in 2020 and informed workers that its founders will take no salary for the next six months while top executives would take a 50% cut.

Last month, Airbnb said private equity firms Silver Lake and Sixth Street Partners would invest $1 billion in the startup, raising its cash reserves to around $4 billion.

The fund would be used to attract more hosts or homeowners who list their properties for rent on its platform, Airbnb had said.

Airbnb cuts 1,900 jobs as coronavirus hits home rentals
 

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Comments (10)
Brady Murray
Brady Murray May 05, 2020 10:49PM ET
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they have 1900 employees? it was like land of the lost trying to get help with a hosed up reservation.
Sam Park
Sam Park May 05, 2020 4:36PM ET
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good riddance
maga king
maga king May 05, 2020 4:11PM ET
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some people are saying this is a great company???? cmon guys. it's basically running illegal hotels! ban it!
Sam Smith
Sam Smith May 05, 2020 4:11PM ET
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it's gonna be interesting when legislation will adapt taxation on airbnb-type revenues. It could become unprofitable for the most and a part of that real estate could come on market and could let thr prices dip. But politcs knows that risk too and wouldn't make any drastic moves anytime soon to avoid 2008 [v2]. In my oppinion the whole business model of airbnb is totally dependent on the taxation and the legality of its "offer" as a whole.
Francesco Lucchesi
Francesco Lucchesi May 05, 2020 4:08PM ET
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that's great news, hopefully they disappear
Eda Mucha
Eda Mucha May 05, 2020 4:08PM ET
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exactly.. they can even vanish for good... the company that ruins European cities by not respecting local governments...
moez ways
mozwayz May 05, 2020 3:57PM ET
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Oh well their customer service is horrible goodbye
Jon Kenyon
Jon Kenyon May 05, 2020 3:57PM ET
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What customer service lol ?
Jonathan Mallo
Jonathan Mallo May 05, 2020 3:53PM ET
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lMAO
Jiří Mastik
Jiří Mastik May 05, 2020 3:51PM ET
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That company is not my favourite one cause they destroyed many city's centers.
FOREX IN WORLD
FOREXINWORLD May 05, 2020 3:29PM ET
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thats a safe for all.
Dmitriy AA
YesNo May 05, 2020 3:29PM ET
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Thats good news for employees of Airbnb. Sweet deal. It tells me that this company is in good shape.
Blake Taylor
Blake Taylor May 05, 2020 3:28PM ET
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Too bad. They were going to go public this year. Many millionaire dreams dashed.
John Elmaleh
John Elmaleh May 05, 2020 3:28PM ET
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Wow. This hurts. Great company. So many people will be affected by this. The era of excessive traveling is over, unfortunatley.
Dmitriy AA
YesNo May 05, 2020 3:28PM ET
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They will have to adopt to this new reality and they will.
Dmitriy AA
YesNo May 05, 2020 3:28PM ET
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Dmitriy AA Virus will die at some point in future.
Eda Mucha
Eda Mucha May 05, 2020 3:28PM ET
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the company that ruined so many metropoles, the company that does not respect local governmental institutions, the company that inadequately increases prices of flats... thanks lord they are going down!
Jw William
Jw William May 05, 2020 3:28PM ET
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Dmitriy AA  humans have not found a cure for the common cold....lol
 
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