SAN FRANCISCO - Airbnb Inc has announced the layoff of nearly 1,900 employees, or 25% of its workforce in the light of the coronavirus (COVID-19) pandemic’s impact on the hospitality industry.
According to Reuters, affected employees in the US will be entitled to 14 weeks’ worth of base pay and one additional week’s worth of pay for every year at the accommodation rental startup.
“Airbnb’s business has been hit hard, with revenue this year forecasted to be less than half of what we earned in 2019,” said Airbnb CEO and founder Brian Chesky in a company memo on Tuesday (5/5).
Earlier this year, Airbnb said it was allocating US$250 million to assist hosts affected by cancellations during the pandemic. In March, the company suspended marketing activities to save US$800 million this year and announced that Mr Chesky and co-founders Joe Gebbia and Nathan Blecharczyk would receive no salary for six months.
In April, Airbnb announced US$1 billion investment by private equity firms Silver Lake and Sixth Street Partners, which the company said would be used to attract more hosts. (MS)