Article Hero

Airbnb dismisses 25% of its employees

1588764672.jpg
Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
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


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

Share this article

How did you find this article?

Awful
Ok
Great
Awesome

Read More

Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.