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Airbnb Inc. will lay off a quarter of its workforce or almost 1,900 workers on Tuesday, as the travel industry was severely affected due to the pandemic.
According to the memo sent by Airbnb’s Chief Executive Officer Brian Chesky, “Airbnb’s business has been hit hard, with revenue this year forecasted to be less than half of what we earned in 2019.”
Laid off workers in the U.S. will receive 14 weeks of basic pay plus an extra week for every year at Airbnb.
Earlier this year, the company said that it would use $250 Million funds to cover the losses of Airbnb’s hosts.
Airbnb halted its marketing operations last March to raise $800 Million cash reserves this year. Employees were also informed that its founders will take no pay during the upcoming months while top officials would take a 50% salary cut.
The company received a $1 billion worth of investments from private equity companies Silver Lake and Sixth Street Partners last April. The debt and equity investment sum up Airbnb’s cash reserves to $4 billion.
Airbnb said that it would use funds to attract more customers for arranging and offering homestays or tourism experiences on its platform. The company acts as a broker as it receives commissions from each booking.
The Dollar fell to two-year lows on Friday, heading to its lowest decline in 10 years as concerns mounted over the economic recovery of the U.S. amid a second resurgence of the COVID-19 pandemic. The Dollar index plunged to 92.777, on course ...
Oil traded higher on Friday, further reclaiming lost ground from three-week lows in the previous session as the COVID-19 situation continued to dent the global economy as well as oil consumption. Brent crude gained 0.3%, trading at $43.08 ...
The Bank of England will announce next week how quickly it expects the economy to recover from the coronavirus pandemic, but it is unlikely to add to the 100 billion pounds of the fiscal package it released in June. Britain’s economy ...
On Thursday, the United States’ Gross Domestic Product (GDP) suffered the biggest economic decline in the second quarter as the surge of coronavirus cases affected the whole country. The U.S. government decided to shut down restaurants, ...
European shares fell earlier on Monday, weighed down by travel stocks after the U.K. placed a quarantine on travelers from Spain as the number of COVID-19 cases continue to surge. The pan-European STOXX index lost 0.5% at 0718 GMT. Meanwhile, ...
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