Vacation and short-term rental platform Airbnb revealed today that it plans to fire 1,900 employees that constitute 25% of its total workforce due to the stoppage in tourism activity worldwide caused by the COVID-19 pandemic. These layoffs will take place on May 11.
In a letter sent to his employees and to which Efe had access, the CEO and co-founder of Airbnb Brian Chesky announced the layoffs, and also revealed that they will reduce investment and stop projects in the divisions of hotels, luxury experiences, transport and productions. audiovisual (Airbnb Studios).
“As we cannot afford to do everything we did before, these cuts have been aimed at turning us into a business more focused on our main activityChesky pointed out.
San Francisco, California-based Airbnb has some 7,500 workers worldwide, most of which in the United States.
United States employees who are laid off will receive a 14 weeks salary compensation full plus an additional week for each year they have worked for the company, as well as a full year of free health insurance.
The tourism sector has been one of the hardest hit by mobility restrictions and social distancing orders decreed to fight the pandemic, and is expected to be one of the longest to recover.
Chesky himself recognized in his letter the workers who expect this year’s earnings to be less than half of those invoiced in 2019.
Airbnb is experiencing in 2020 one of the most difficult moments in its history since it was founded in 2008, coinciding with what, just a few months ago, was expected to be its year of glory as it was growing at a great rate and anticipated its departure to the stock markets, something that ultimately will not happen.