With the global travel industry coming to a standstill after the coronavirus pandemic, the hotel industry has faced a massive blow too. Thus, AirBnB had to come to a decision of laying off nearly 1900 out of 7500 employees. It comprises about 25% of AirBnB’s global workforce. After the crisis, the acute financial crunch has brought AirBnB and many more companies to their toes. Read on to know the details.
What’s Happening?
AirBnB CEO Brian Chesky has posted a memorandum in AirBnb Newsroom on May 5, 2020. In his message, Chesky stated that the company is striving through the ‘most harrowing crisis’ of a lifetime. He also added that their 2020 profit would be reduced to less than half of what they made in 2019 through bookings. The company took steps such as raising $2 Billion in capital and cost-cutting as well, but these measures were not sufficient. Therefore, they had to take a step further to make up for the ‘two hard truths’. The first one among them is the uncertainty over when travel will resume. The second truth is, even when it resumes, it will look different. Chesky has also tweeted, urging other companies to reach out to him, if they are hiring people who are leaving AirBnB.
We have great people leaving Airbnb, and I think other companies will love them as much as I do. If you are hiring, reach out to me at brian.chesky@airbnb.com and our team will connect you. https://t.co/lXrza2Ssg8
— Brian Chesky (@bchesky) May 6, 2020
Also Read: After Vistara, Indigo, GoAir and SpiceJet To Cut Salaries Of Employees Amid Lockdown
What Else?
As the company is laying off its employees, it is offering 14 weeks of base pay along with an extra week for every year spent in AirBnB to the employees who are departing. In addition, the laid-off employees would also get subsidized healthcare coverage for one year from COBRA. AirBnB is also downscaling its investment in AirBnB studios (that aims at creating TV shows about travel), along with its investment in luxury rental services and transportation services.
Also Read: The Future of the Airline Industry In India Post Lockdown
One invisible virus had the power to cripple multiple economies, giving lives all across the globe a run for survival. Even when things get back to normal, it might take a long time for many businesses to get back to their flourishing stage all over again. Let’s us all pray together for the world to recover from this unfortunate situation at the soonest.