Airbnb to lay off 25% of workforce

Airbnb recently announced the downsizing of its workforce. Based on the note sent by co-founder and CEO Brian Chesky to Airbnb employees, the forecasted revenue for this year turned out to be less than half of the company’s earnings in 2019.

To keep the company afloat despite the pandemic, Airbnb will lay off 25% of its employees or approximately 1,900 out of 7,500 Airbnb employees. The company will also hold back its investment in transportation and Airbnb Studios while scaling back to accommodation services such as Airbnb Luxe and Airbnb Hotels.

The decision will also affect the global Airbnb teams.

Employees in the US will receive 14 weeks of base pay, plus one additional week for every year at Airbnb. For employees outside the US, they will receive at least 14 weeks of pay plus tenure increases consistent with the mandated labor law on their country. They will also receive equity bonds, year-long health insurance, four months of mental health support, and connect leaving employees to new job opportunities.