Airbnb has cut down jobs of nearly 1900 workers, which is equal to 25% of their workforce. Airbnb, a startup entirely depends upon exploring. But due to this global pandemic coronavirus, traveling businesses have come to a halt.
Rental startup-Airbnb founder Brian Chesky said that their revenue had seen an enormous decline. Their income this year was less than half of what they made in the year 2019.
The workers who have cut down will get 14 weeks of base salary plus one extra week for each year at Airbnb in the United States. Tourists are canceling their plans. People no more look towards vacation or work trips or family visits or any tour, which includes traveling. This virus outbreak has put a stop on the traveling business. Airbnb has to allocate $250 million to compensate for damages acquired by hosts.
As traveling has is on halt, the startup suspended all of its marketing activities to save 800 million in 2020. The startup founder declared that he wouldn’t take any pay for the next six months. Top 5 officials will get a 50% cut.
Private equity firms’ sixth street partners and silver lake would fund $1 billion. The startup would then increasing its capital reserves to $4 billion. The capital would be used to draw more hosts and homeowners who registered their properties on Airbnb.