‘’Travel in this new world will look different, and we need to evolve Airbnb accordingly. People will want options that are closer to home, safer, and more affordable.’’
Airbnb is laying off 1,900 employees; comprising 25% of its workforce, as the travel sector is experiencing a hiatus until an unknown date, due to the coronavirus pandemic.
The impacted groups include Transportation and Airbnb Studios (which will be placed on hold), as well as Hotels and Lux .
Chief Executive Officer Brian Chesky wrote in an email to staff, Tuesday, announcing the news and the process of the lay-offs;
U.S. employees laid off will receive 14 weeks of base pay plus an additional week for every year they worked at Airbnb, and the company will also provide 12 months of healthcare for laid off U.S. employees, Chesky said.
‘’In all other countries, we will cover health insurance costs through the end of 2020. This is because we’re either legally unable to continue coverage, or our current plans will not allow for an extension. We will also provide four months of mental health support through KonTerra.’’ he noted
‘’We are dropping the one-year cliff on equity for everyone we’ve hired in the past year so that everyone departing, regardless of how long they have been here, is a shareholder. Additionally, everyone leaving is eligible for the May 25 vesting date.’’, he stated in his email, regarding equity
Chesky said May 11 will be the last work day for impacted Airbnb employees in the U.S. and Canada.
“I have a deep feeling of love for all of you,” Chesky said. “Our mission is not merely about travel. When we started Airbnb, our original tagline was, ‘Travel like a human.’ The human part was always more important than the travel part. What we are about is belonging, and at the center of belonging is love.”
The news comes less than a month after Airbnb raised $1 Billion in debt in an attempt to saviour the business.