Less than two months after it laid off 30 percent of its employees, apartment-style accommodation provider Zeus Living, which focuses on corporate travel of at least 30 days, is letting go nearly half of its remaining staff, CEO Kulveer Taggar announced in an online post.
Taggar listed four factors that influenced the decision: Covid-19's effect will last longer than anticipated, and business travel will recover slowly. Revenues will likely be 55 percent of what had been budgeted for in 2020. There will be fewer homes in its portfolio. And the company was "required to return the [Paycheck Protection Program] loan earmarked to help cover payroll."
The layoffs come less than a week after the company raised $15 million in equity and debt from existing backers, including CEAS Investments I, Initialized Capital Management and Soros Fund Management, according to Bloomberg. Its valuation was put at $110 million, or nearly half the $205 million it was valued at five months ago when it raised $55 million in a Series B round that included Airbnb, which also has seen its valuation nearly halved.
The 73 people let go will receive severance, their laptops, earned vacation time as pay and one month of COBRA insurance. "We've set up an alumni network for those in this and the previous round of layoffs," wrote Taggar. "Our hope is to provide support through introductions, recommendations for future roles based on the good work done at Zeus, and personal connection."
RELATED: Layoffs Hit Multiple Apartment-Style Rental Companies