Published on : Friday, May 8, 2020
Airbnb is recalibrating in the wake of the coronavirus pandemic and cutting a quarter of its staff around the world and it is expected some 1,700 roles from a total of 7, 500 will go.
The demand for travel has stalled and the company would scale back or halt newer initiatives like investments in hotels and luxury resorts and flights.
It is expected that Airbnb is bracing for revenues to drop by half or worse this year.
Airbnb chief executive and cofounder Brian Chesky said in a letter to the employees that they are collectively living through the most harrowing crisis of our lifetime, and as it began to unfold, global travel came to a standstill.
They are not sure when travel would return, or what form it would take when it did.
Chesky said that travel in this new world will look different, and we need to evolve Airbnb accordingly.People will want options that are closer to home, safer, and more affordable. However, they will also yearn for something that feels like it’s been taken away from them – human connection.
When they started Airbnb, it was about belonging and connection but this crisis has sharpened their focus to get back to their roots, back to the basics, back to what is truly special about Airbnb – everyday people who host their homes and offer experiences. In two rounds of funding Airbnb raised $2 billion so that it had sufficient funds and its redundant employees would receive 14 weeks of base pay, plus one additional week for every year at Airbnb