Apartment-style provider Airbnb announced Tuesday that it is
laying off nearly 1,900 employees, about 25 per cent of its workforce.
Despite raising an additional US$2 billion in April and
cutting costs across the organisation since the coronavirus pandemic began,
"it became clear that we would have to go further when we faced two hard
truths: We don't know exactly when travel will return. When travel does return,
it will look different," CEO Brian Chesky wrote in a message on the
company's website.
The company is refocusing the business to adjust to what the
travel landscape might look like once travel resumes. "People will want
options that are closer to home, safer and more affordable," Chesky wrote.
"But people will also yearn for something that feels like it's been taken
away from them – human connection. When we started Airbnb, it was about
belonging and connection. This crisis has sharpened our focus to get back to
our roots, back to the basics, back to what is truly special about Airbnb – everyday
people who host their homes and offer experiences."
As a result, the company is "pausing" its efforts
in transportation and Airbnb Studios, as well as scaling back its investments
in hotels and luxury. While the message did not single out changes for Airbnb
for Work, it noted that all teams would be affected, with many reduced in size.
The home-rental pioneer has been greatly affected by
Covid-19, with plans for an IPO this year possibly put on hold and its
valuation reduced from US$31 million to $18 million. It also recently called
off a deal with RXR Realty to develop 200 units in Rockefeller Center.
Airbnb declined further comment.