This archive report was first published on 6 May 2020.
Published on May 6, 2020, Airbnb Inc announced it would be laying off 25% of its workforce, approximately 1,900 employees, due to the COVID-19 pandemic's devastating impact on global travel.
According to a memo to employees, founder Brian Chesky stated, “Airbnb’s business has been hit hard, with revenue this year forecasted to be less than half of what we earned in 2019.”
As a result of the layoffs, employees in the United States will receive 14 weeks of base pay plus an additional week for every year at Airbnb.
Earlier this year, Airbnb allocated $250 million to help offset losses incurred by hosts, who have seen millions of tourists cancel plans for vacations, work trips, and family visits.
Additionally, in late March, Airbnb suspended its marketing activities to save $800 million in 2020 and informed workers that its founders would take no salary for the next six months while top executives would take a 50% cut.
Despite these efforts, Airbnb received a $1 billion investment from private equity firms Silver Lake and Sixth Street Partners last month, raising its cash reserves to around $4 billion.
