Citing revenue declines, Airbnb cuts 25% of workforce (techcrunch.com)

Article summary

Airbnb is laying off around 25% of its workforce, approximately 1,900 employees, due to revenue declines caused by the COVID-19 pandemic. The company will be narrowing its focus on core operations and shedding more experimental and costly endeavors. Affected employees will receive 14 weeks of pay, plus an additional week for each year of service, as well as continued health insurance coverage. Airbnb's revenue is expected to be under 50% of its 2019 total, which was around $4.8 billion.

Main themes

• Airbnb layoffs
• COVID-19 impact
• tech company definition
• economic downturn
• company leadership
• acquisition speculation

What commenters say

• Some commenters believe that Airbnb's business model is not truly a tech company, but rather a services company that utilizes technology.
• Others argue that Airbnb is a tech-enabled marketplace and should be considered a tech company.
• There is a prediction that the current economic downturn will lead to a wave of bankruptcies and that even large companies like Microsoft will be affected.
• Some think that instead of layoffs, companies could consider cutting salaries to reduce costs and retain employees.
• It is suggested that top performers would likely leave a company if their salaries were cut, even in abnormal economic times.
• A few commenters praise Airbnb's leadership for treating its employees well during the layoffs, with a generous severance package.
• There is disagreement over whether the COVID-19 pandemic will have a long-term impact on Airbnb's business prospects, with some believing it will recover and others thinking it will face continued challenges.
• Some commenters think that Airbnb could be an acquisition target for larger companies with cash reserves, such as the FANG companies.