Apartment-style provider Airbnb announced Tuesday that it is laying off nearly 1,900 employees, about 25 percent of its workforce. Despite raising an additional $2 billion in April and cutting costs across the organization since the coronavirus pandemic began, "it became clear that we would have to go further when we faced two hard truths: We don't know exactly when travel will return. When travel does return, it will look different," CEO Brian Chesky wrote in a message on the company's website.
The company is refocusing the business to adjust to what the travel landscape might look like once travel resumes. "People will want options that are closer to home, safer and more affordable," Chesky wrote. "But people will also yearn for something that feels like it's been taken away from them—human connection. When we started Airbnb, it was about belonging and connection. This crisis has sharpened our focus to get back to our roots, back to the basics, back to what is truly special about Airbnb—everyday people who host their homes and offer experiences."
As a result, the company is "pausing" its efforts in transportation and Airbnb Studios, as well as scaling back its investments in hotels and luxury. While the message did not single out changes for Airbnb for Work, it noted that all teams would be affected, with many reduced in size.
The home-rental pioneer has been greatly affected by Covid-19, with plans for an IPO this year possibly put on hold and its valuation reduced from $31 million to $18 million. It also recently called off a deal with RXR Realty to develop 200 units in Rockefeller Center.
Airbnb declined further comment.
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