Airbnb has announced plans to lay off 25% of its workforce in the wake of the coronavirus that has continued to take a toll on businesses across the world.
According to the company’s Chief Executive Officer, Brian Chesky, close to 1,900 employees across the world will be affected by the layoffs.
The company reported that employees outside the United States will receive at least 14 weeks severance pay. It will also provide 12 months of health insurance in the United States, and health care coverage through 2020 in the rest of the world.
In late March, the company suspended all its marketing activities amidst numerous cancellations over the COVID-19 global pandemic. The move was aimed at saving the company $800 million throughout this year, as they struggle to remain afloat.
According to the CEO, Airbnb anticipates its 2020 revenue to drop to 50% of 2019’s total. It recorded $4.8 billion in revenue last year.
Airbnb is an online marketplace for arranging or offering lodging or tourism experiences. Although the company does not own any of the real estate listings, it acts as a broker, receiving commissions from each booking. The company is based in San Francisco, California, United States.
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