Coronavirus makes Airbnb cut off 25% of staff as travel restrictions are still in force.
Yesterday, CEO Brian Chesky addressed a letter to his worldwide employees, saying that the business took a hard hit. He expects the revenue for 2020 to be half of the 2019 one - $4.8 billion. Approximately 1,900 worldwide employees will be cut off, from a total of 7,500. Investors chipped in and gathered $2 billion to provide liquidity and preserve as much as possible from the company.
Chesky believes that the company will recover completely, but the changes made now are not temporary. To keep the clients satisfied even during these times, they were allowed to cancel reservations without fees and provided financial assistance to hosts. Analysts think that part of that $2 billion went on funding these efforts.
Airbnb will provide one year of health insurance to American employees, while the international employees will receive it until the end of the current year. Also, Airbnb affords to pay up to 14 weeks to employees, and an extra week for each year spent in the company.
Moreover, the company postponed its 2020 IPO indefinitely. Delayed are also the investments in the hotelier industry and flights.
See the difference when trading with CAPEX.com by accessing elite features:
- Stellar custom service
- Powerful WebTrader platform and mobile app
- High-end integrated trading tools
- Full license and regulation from top regulators
Sources: edition.cnn.com, bbc.com, techcrunch.com
Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.
Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance and forecasts are not reliable indicators of future results.