Airbnb has announced that it has had to terminate the contracts of some 1,900 of its employees. The mass redundancies come despite Airbnb successfully raising $2 billion in April from, among others, Zoopla owner Silver Lake.
The company plans to abandon its plans to provide transportation for guests as well as moves to purchase hotels and even its fledgeling venture into producing streaming travel videos. According to a statement on Airbnb's website written by CEO Brian Chesky, the idea is to pare down and:
"reduce our investment in activities that do not directly support the core of our host community."
Revenue for the former darling of Silicon Valley is expected to be less than half of that of 2019, and what with reported infighting on the board, dissatisfied hosts and now company lay offs, Airbnb really does have its work cut out.
The vacation rental giant has been looking into changing the business model to target more long term rentals and it will be interesting to see if it rubs up against traditional big-boy portals in transitioning to this new way of doing business.