Airbnb to Cut 25% of Workforce as Coronavirus Stalls Global Travel

Airbnb is forecasting revenue this year at less than half 2019's level and cutting 1,900 employees and 'the most harrowing crisis of our lifetime.'

Airbnb is slashing about 1,900 jobs and is cutting investments in non-core operations. The coronavirus pandemic definitely is affecting business even as more people start traveling more. The Co-Founder and Chief Executive Brian Chesky told employees on Tuesday via a memo, saying that the company's revenue forecast for this year is "less than half" of last years level. He added in the memo, "We are collectively living through the most harrowing crisis of our lifetime, and as it began to unfold, global travel came to a standstill." 

The pandemic has stopped global travel and has forced Airbnb to retrench. The company is also loosing investments in newer areas like its Transportation and Airbnb Studios initiatives. In another interview Mr. Chesky said he didn't plan to lay off salaried employees but said he needed to closely monitor cash reserves, business performance and the economic outlook daily. He also said nothing was off the table. 

Many hosts borrowed large sums of money to build small properties, which are largely dependent on the business Airbnb brings them. They were hit hard when Airbnb decided to grant guests full refunds for stays between March 14 and 31. The external market environment and the different factors in play definitely affected Airbnb in more ways than one and their recovery will depend on how well they position the company to deal with the aftermath of Covid-19. 

Source: https://www.wsj.com/articles/airbnb-to-cut-25-of-workforce-as-coronavirus-stalls-global-travel-11588707183