Airbnb Laid-off 25% of Its Employees due to Pandemic

It cannot be denied, the world of tourism, hospitality, and lodging became the fields that were most crashed due to the COVID-19 pandemic. Airbnb is one of them.

This lodging provider platform must experience a crisis and is now forced to lay off employees. An official letter by Brian Chesky, the CEO and Co-Founder of Airbnb explained that this extreme step mus be done due to the crisis.

The contents of the letter were very touching. Chesky said that he always coordinates with his employees. However, this time, he was forced to share news of a reduction in the number of workers, because Airbnb was hit hard by the pandemic.

In the letter, he said that the company must reduce the number of their employees due to the pandemic. Although difficult, the step was deemed necessary. Because of the dramatic reduction in costs in all areas of work Airbnb is still considered unable to help the business.

Not to mention the lack of clarity when tourism or travel will return to normal. The absence of projections as to what will change the style of travel after the pandemic ends is also another reason for reducing the number of employees.

A Total of 1,900 Employees were Laid-off for Efficiency

“Collectively, we are going through the most terrible crisis in our lives, and when the pandemic feels increasingly widespread, global travel has stopped. The Airbnb business has been hit hard, with estimated revenue of less than half the amount earned in 2019. We have raised 2 billion US dollars or around Rp. 30.1 trillion for capital and dramatically cutting costs in almost every corner of Airbnb,” he explained.

Reduction in the number of employees is done so that the remaining workforce will operate in a more focused business strategy. Even so, Chesky knows that Airbnb will recover fully. There are 1,900 workers out of total 7,500 who have to leave the company. This number reaches around 25 percent of the total employees in the lodging provider platform.

In order to be more focused, Airbnb is developing a program that suits customers’ desires. In times like today, people are happier with lodging properties that are closer to home, more affordable, and safer.

Even so, travelers still want inter-human relationships. This picture will make Airbnb more focused on the host and the experience they can offer to guests who stay.

For this reason, Airbnb will discontinue the Transportation and Studio features of Airbnb, as well as reduce investment in hotels and lux (luxury travel and lodging). Then Airbnb will map needs, create more focused strategies, and review comprehensively.

Employees who were Laid-off Received Salaries and Severance Payment

Fortunately, employees who experience layoffs will still get a salary for 14 weeks plus severance pay. Every employee who is laid off will also get shares, no matter how long they work at Airbnb.

Employees who are domiciled in the United States will get health insurance for a year. Meanwhile, employees outside the US will receive health insurance until the end of 2020.

In addition, employees who have been laid off will also be linked to new job opportunities through various programs. Employees are also allowed to keep office laptops for use in finding work until they finally have a new profession.

The last tenure of employees based in the United States and Canada who were laid off was May 11, 2020. While the last working time of employees based in other parts of the world will be announced through a meeting to be held by the CEO.

“For employees who have been forced to leave Airbnb, I am truly sorry,” Chesky said on the letter.

He also said that this laid-off was not the employees fault, and that the company does value their talents and quality. Chesky closed his letter by thanked them for sharing their talents with Airbnb.