Airbnb, a rental service that planned to go public in 2020, will lay off 1,900 people due to the coronavirus crisis. This is approximately 25% of the staff.
Airbnb expects a sharp fall in revenue by the end of 2020 - revenue may be less than half of last year's $ 4.8 billion, CEO Brian Chesky told employees in a letter.
“We are all going through the most difficult crisis in our life together, and when it began to unfold, travel around the world came to a standstill,” said a top manager.
Earlier Airbnb received $ 2 billion in development from investment funds. A large share was allocated by Silver Lake and Sixth Street Partners. In return, they received shares and debentures of the company.
By the end of 2019, Airbnb had debts of $ 276.4 million, double the year earlier. In the first half of 2020, the company predicts losses of up to $ 1 billion.
In addition, Cesky announced a reduction in investments in non-core businesses and new regions for the company. Airbnb has made it clear that even after the pandemic, when people start traveling again, the remote booking business will change. So far, the management of the service has decided to concentrate on traditional hotels.
Airbnb donates $ 250 million to support homeowners
“Traveling in the new world will look different and we need to evolve Airbnb accordingly. People will want travel options that are closer to home, safer and more affordable, ”Chesky said.
Airbnb against coronavirus
At the end of March, Airbnb announced a $ 250 million payout to homeowners who had canceled reservations due to the pandemic. Property owners were promised 25% of the booking amount, guests - a full refund.
In November, Airbnb signed a $ 500 million contract with the International Olympic Committee. Under the contract, fans who come to the Olympics will be able to find accommodation on Airbnb, and the host country will avoid spending on hotel infrastructure. The contract included the 2020 Tokyo Games, but due to the coronavirus, they were postponed until the summer of 2021.