Airbnb is cutting 25% of staff — 1,900 jobs — after its business has been slammed by the coronavirus crisis

  • Airbnb introduced Tuesday it is slicing 25% of its workers, or about 1,900 jobs.
  • The cuts are supposed to refocus the corporate on its core enterprise of house sharing; the corporate plans to pause or in the reduction of different efforts akin to providing lodge lodging or making journey movies, CEO Brian Chesky advised staff in an inside letter.
  • Though Airbnb has raised $2 billion in current weeks, it expects its income this 12 months to be lower than half the $4.eight billion it recorded in 2019, Chesky stated.
  • Airbnb plans to supply affected employees not less than 14 weeks of severance pay and, within the US, a 12 months’s price of healthcare protection.
  • Visit Business Insider’s homepage for more stories.

Airbnb, hit onerous by the worldwide coronavirus epidemic, is shedding about 1,900 employees, or 25% of its workers, firm CEO Brian Chesky advised staff on Tuesday.

Chesky introduced the cuts at a staff meeting at noon then confirmed them in an inside letter he subsequently despatched to employees. The corporate is anticipating the pandemic to reshape the journey business and its enterprise, Chesky stated within the letter. The cuts are supposed to assist refocus Airbnb’s enterprise on what it sees as its main alternatives after the disaster, he stated.

“As we speak, I need to affirm that we’re lowering the dimensions of the Airbnb workforce,” Chesky stated within the letter. “For an organization like us whose mission is centered round belonging, that is extremely tough to confront, and it will likely be even tougher for many who have to depart Airbnb.”

The cuts come although Airbnb has raised $2 billion in the last month by debt financing. The corporate is forecasting that its income shall be lower than half the $4.8 billion it pulled in last year.

The corporate plans to inform affected employees within the US and Canada in a while Tuesday, Chesky stated. Staff in different nations shall be notified in keeping with native legal guidelines and requirements, he stated. The efficient date of the layoffs within the US and Canada is subsequent Monday.

The corporate is planning on returning its focus to house sharing — individuals who provide lodging within the rooms, flats, and homes that they personal or handle. In consequence, Chesky stated, it is planning on pushing the pause button on its efforts in transportation and in Airbnb Studios, its effort to provide streaming journey movies. The corporate is also planning to chop again on investments in providing lodge rooms and in Lux, it is luxurious lodging effort, he stated.

Airbnb plans to pay laid off US employees 14 weeks of base pay plus an extra week for annually or partial 12 months of service to the corporate. Non-US staff will get not less than 14 weeks of pay.

The corporate can also be planning on offering 12 months price of well being care protection to US employees. Outdoors the US, employees can have their medical health insurance prices paid by the tip of this 12 months.

The mass job cuts are solely the newest effort by Airbnb to slash bills in response to the disaster. Final month, the corporate laid off most of its contractors and postponed its summer internships. In late March, it slowed its hiring and froze its marketing spending.

Final month, proper after Airbnb raised its first $1 billion in debt financing, Enterprise Insider estimated that at its burn price from 2019, it may still run out of cash in less than a year.

Obtained a tip about Airbnb? Contact Troy Wolverton through electronic mail at twolverton@businessinsider.com, message him on Twitter @troywolv, or ship him a safe message by Sign at 415.515.5594. You too can contact Business Insider securely via SecureDrop.

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