Airbnb Facing Financial Difficulty, Lays off 25% of Workforce

As the coronavirus pandemic continues to ravage economies around the world, some industries are being bit harder than others. One of those hard-hit industries include the travel and hospitality industry, which has seen a sudden and drastic decline in consumerism to the point that many companies are facing significant financial ruin. Airbnb, a popular hospitality provider, has recently run into trouble with its Superhosts whom have suddenly become over-leveraged due to nearly non-existent new bookings amid the coronavirus.

Previously, the financial troubles were merely isolated to Airbnb’s accommodation providers; now however, the entire company has found itself in jeopardy. Airbnb’s CEO, Brian Chesky, has recently issued a harrowing statement, in which the company will lay off 1,900 of its 7,500-strong workforce. Then, the company will also halt all work projects on luxury stays, hotels, as well as its transportation division.

Airbnb’s US-based employees which are getting laid off will be given 14 weeks worth of base pay, with an additional week added on for each year the employee has been with the company. Furthermore, a full-years’ worth of healthcare coverage will be added to the severance package, in addition to increased equity eligibility as well as job searching supports.

Just last month, Airbnb announced to its employees it would discontinue its marketing strategies, impose a hiring freeze, and reduce executive’s salaries as well as suspend bonuses in 2020. However, that was not enough to keep the company from falling into further financial trouble as the coronavirus pandemic rages on.

Information for this briefing was found via CNBC and AirDNA. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Canada Sees 500,000 Mortgage Deferral Requests; 10% of Big Bank Mortgages

This morning the Canadian Bankers Association announced there has been 500,000 requests for mortgage deferrals...

Friday, April 3, 2020, 09:39:25 AM

US Loses Another 3.8M Jobs Last week; Nearly 30M in 6 Weeks.

This morning the Department of Labor released the initial jobless claims data for the week...

Thursday, April 30, 2020, 10:52:51 AM

Apple Plans to Move 20% of Production from China to India in Response to Coronavirus Chaos

As the coronavirus pandemic continues to wreak havoc around the world, several large companies are...

Wednesday, May 13, 2020, 12:02:00 PM

Deutsche Bank Proposes 5% ‘Privilege’ Tax on Those Choosing to Work From Home

The coronavirus pandemic has caused significant shifts in the typical office environment, as many employees...

Saturday, November 14, 2020, 04:03:00 PM

US Looking At $2 Trillion Stimulus Package

This morning, word’s out on the size of the stimulus package a group of bipartisan...

Saturday, March 21, 2020, 02:30:38 PM