Many big companies are losing millions of dollars, and now Airbnb has also joined that list. A recent report from Airbnb shows that they have decided to lay off 25% of its current working staff because of a terrible coronavirus impact on their business. The deadly virus has affected many companies, but the major one is traveling, hotels, and restaurants. Now Airbnb, which provides online accommodation services to tourists, and others have lost their market share significantly. Since many people are not traveling, the demand for accommodation services has gone down considerably.
Airbnb recently said they are cutting down their working staff by more than 25%, which means 1900 people are going to lose their jobs because of this decision. CEO Brian Chesky said in a memo that they are cutting staff at Airbnb studios, hotels and transportation services which are currently going through some difficult times. The pandemic situation has negatively impacted on Airbnb, and that’s why the company decided to go with this option. The departing staff reportedly are going to get 14 weeks to pay along with some bonuses, and full one-year health insurance.
International workers are going to get health coverage by the end of this year, and those who worked less than a year will be able to claim vested share options. Airbnb is that company which is losing lots of money because of this crisis. Before the pandemic situation happened, this company was in lots of debt, and now due to the complicated situation, they are not able to raise more money to strive. Since lockdowns are going to lift soon, Airbnb is expecting some pre-bookings from their customers that will give the company a much-required revenue. However, considering the current scenario, experts believing the hard time is yet to come.
Paul is an American-based writer covering Latest business trends. Paul cover Business and media for many news sites. He has been breaking news and writing features on these topics for major publications since 2012. Paul prefers writing about business news keeping science and technology into perspective.