Like traditional hotel companies like Marriott International and Hyatt Hotels Corp., the burgeoning apartment-style rental industry, typically backed by investment capital, has cut staff because of decreased demand due to the coronavirus outbreak and government travel restrictions.
Zeus Living, which provides 30-day or longer rentals, reduced staff by about 30 percent, Business Insiderreported. "It's especially tough because our people are the ones who've helped build the company and get us to where we are today," CEO Kulveer Taggar tweeted on Tuesday. "I've committed to helping the [roughly] 80 soft land as much as possible (pls reach out if you are hiring)."
In December, the company had secured $55 million in Series B funding from investors that included Airbnb.
Sonder, one of the largest of these companies and which continued its expansion into New York City in February, has laid off about 22 percent of its workforce and furloughed about 11 percent, affecting in total more than 400 people, according to The Information on Tuesday. The company hopes to rehire the furloughed employees, who will keep their health insurance, the site reported.
Earlier in March, Lyric reduced its staff by 20 percent and was set to close 179 of its 600 units. The company last April raised $160 million in a Series B round led by Airbnb, which is having its own difficulties: Reports last week indicate Airbnb is seeking new capital, might delay its IPO, and has hosts upset that the company extended its cancellation policy.
Zeus Living and Sonder did not immediately respond to requests for comment. Airbnb declined to comment.
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