Airbnb – online booking platform plans to lay off its staff by 25% as it struggles to cope up with low travel frequency due to COVID-19.
Airbnb also said that it will not initiate its new project as the timing is not favorable, these initiatives included investments in hotels and luxury resorts and even flights.
According to an estimate this year the company is bracing for revenues to drop by half or worse. Keeping in mind the developing situation of COVID-19, Brian Chesky declares “While we know Airbnb’s business will fully recover, the changes it will undergo are not temporary or short-lived” he said.
It is indeed clear that the travel industry is expecting a big recession and companies like Aribnb are just starting to feel the heat.
The whole scheme will include about 1,900 of Airbnb employees.
But all is not so grim with Airbnb, employees who have been hit by the downsizing will get at least 14 weeks of pay from the $2bn raised from investors to get through the slump earlier, which will cover health insurance costs for the international workers till the end of the year and for 12 months for US employees.