Airbnb has decided to lay off 25 per cent or 1,900 of its 7,500 workforce as the coronavirus pandemic continues to pummel the travel sector. The company also said it would scale back or halt newer initiatives, such as investments in hotels and luxury resorts and flights.
It is one of the largest single layoffs by a Silicon Valley company since the novel coronavirus pandemic sent the world reeling. Boss Brian Chesky said it's not clear when travel will return or what it will look like when it does. "While we know Airbnb's business will fully recover, the changes it will undergo are not temporary or short-lived," he said.
The firm is bracing for revenues to drop by half or worse this year. It has seen tens of thousands of canceled reservations and plummeting revenue due to COVID. The company was on track for an initial public offering (IPO) this year, but reportedly postponed those plans.
In his letter to employees, Chesky said revenue for Airbnb this year will be less than half of what it earned in 2019, which was reportedly $4.8 billion. The move at Airbnb is the latest sign the travel industry is preparing for a prolonged downturn.
