365体育平台

Latest in Gear

Image credit: Mateusz Slodkowski/SOPA Images/LightRocket via Getty Images

Airbnb will lay off 25 percent of its workforce due to COVID-19

It's cutting 1,900 jobs to stay afloat during the pandemic.
Jon Fingas,
May 5, 2020
145Shares
Share
Tweet
Share

Sponsored Links

POLAND - 2020/03/23: In this photo illustration an Airbnb logo seen displayed on a smartphone. (Photo Illustration by Mateusz Slodkowski/SOPA Images/LightRocket via Getty Images)
Mateusz Slodkowski/SOPA Images/LightRocket via Getty Images

The COVID-19 pandemic has effectively gutted Airbnb’s core business, and the company is taking drastic action to stay afloat while people aren’t travelling. The company has to TechCrunch that it’s laying off 1,900 employees, or just over 25 percent of its workforce, to cut costs during the crisis. It didn’t outline which countries would be most affected, but a memo from CEO Brian Chesky said the layoffs would affect Transportation, Airbnb Studios, Hotels and Lux.

The cuts would be “mapped to a more focused business,” Chesky said in the memo.

Departing staff will get 14 weeks of pay, plus another week for every year they’ve worked at Airbnb, and will get a year’s worth of health insurance in the US. International workers will get health coverage through the end of 2020. Employees who’ve worked for less than a year can buy their vested share options.

365体育平台Airbnb has a degree of cushioning. It scrambled to raise capital once the pandemic hit, including $2 billion in debt. All the same, it’s easy to see why the company would cut jobs to such a severe degree. While lockdowns are beginning to lift, it could be a long time until travel resumes in earnest, let alone until enough travellers are comfortable that Airbnb sees pre-pandemic booking levels. The layoffs might help Airbnb survive until that point without having to ask for more money.

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
145 Shares
Share
Tweet
Share

Popular on Engadget

Pablo Escobar’s brother is trying to sell refurbished iPhone 11 Pros for $499

Pablo Escobar’s brother is trying to sell refurbished iPhone 11 Pros for $499

View
Google offers a free Nest Mini to YouTube Premium subscribers

Google offers a free Nest Mini to YouTube Premium subscribers

View
Trump’s executive order could limit protections for social media companies

Trump’s executive order could limit protections for social media companies

View
Oppo's Evangelion phone is surprisingly faithful to the anime

Oppo's Evangelion phone is surprisingly faithful to the anime

View
Gogoro’s Eeyo 1 is a lightweight e-bike designed for the city

Gogoro’s Eeyo 1 is a lightweight e-bike designed for the city

View

From around the web

Airbnb will lay off 25 percent of its workforce due to COVID-19 | Engadget Airbnb will lay off 25 percent of its workforce due to COVID-19 | Engadget Airbnb will lay off 25 percent of its workforce due to COVID-19 | Engadget Airbnb will lay off 25 percent of its workforce due to COVID-19 | Engadget Airbnb will lay off 25 percent of its workforce due to COVID-19 | Engadget Airbnb will lay off 25 percent of its workforce due to COVID-19 | Engadget Airbnb will lay off 25 percent of its workforce due to COVID-19 | Engadget