Airbnb to lay off 25% of its workforce
Online property marketplace Airbnb on Tuesday, May 5, said that it is planning on laying off almost 1,900 employees, or roughly a quarter of its workforce.
The decision to lay off employees came as a result of the coronavirus pandemic’s brutal toll on travel business.
“Since we cannot afford to do everything that we used to, these cuts had to be mapped to a more focused business,” the CEO said.
Employees in the software engineering, and product department were said to be spared from the layoff.
Those cut from the company will be offered at least three- and a half- months severance pay. US-based employees are also to receive a year of health insurance coverage.
The workforce cut would save between $400 million to $500 million annually, estimated by persons close to Airbnb.
The company forecasted that the revenue for this year is expected to be half of what it was last year.
Airbnb clocked in $4.8 billion in revenue last year.
“Travel in this new world will look different, and we need to evolve Airbnb accordingly.” CEO Brian Chesky stated.