Airbnb the world’s most popular cheap rental platform is reducing the size of its workforce due to the hit the travel industry has received by the coronavirus pandemic, the company’s co-founder and CEO, Brian Chesky, shared a heartfelt note to its employees on Tuesday.
CEO Brian Chesky sent the following note to Airbnb employees:
This is my seventh time talking to you from my house. Each time we’ve talked, I’ve shared good news and bad news, but today I have to share some very sad news.
When you’ve asked me about layoffs, I’ve said that nothing is off the table. Today, I must confirm that we are reducing the size of the Airbnb workforce. For a company like us whose mission is centered around belonging, this is incredibly difficult to confront, and it will be even harder for those who have to leave Airbnb. I am going to share as many details as I can on how I arrived at this decision, what we are doing for those leaving, and what will happen next.
Let me start with how we arrived at this decision. We are collectively living through the most harrowing crisis of our lifetime, and as it began to unfold, global travel came to a standstill. Airbnb’s business has been hit hard, with revenue this year forecasted to be less than half of what we earned in 2019. In response, we raised $2 billion in capital and dramatically cut costs that touched nearly every corner of Airbnb.
According to Chesky, the coronavirus crisis has sharpened the company’s focus to get back to the basics, “back to what is truly special about Airbnb — everyday people who host their homes and offer experiences”.
The company will reduce its investment in activities that do not directly support the core of its host community.
“We are pausing our efforts in Transportation and Airbnb Studios, and we have to scale back our investments in Hotels and Lux,” Chesky said.
He further said in his letter that “To those leaving Airbnb,
I am truly sorry. Please know this is not your fault. The world will never stop seeking the qualities and talents that you brought to Airbnb…that helped make Airbnb. I want to thank you, from the bottom of my heart, for sharing them with us.
Brian”
