Airbnb, the home rental and hospitality company, reportedly laid off 30% of its recruiting staff this week. Despite the company reporting its first profitable year in 2022, with a net income of $1.9 billion, the decision is thought to be a precursor to more widespread layoffs. According to Bloomberg, the layoffs affected less than 0.4 percent of the San Francisco-based company’s total workforce of about 6,800 people.
Airbnb announced in February that it intends to increase its workforce in 2023. However, Bloomberg reports that Airbnb is reducing headcount and has begun by firing approximately 30% of its recruiting staff. “Over the last three years, we’ve become a leaner and more focused organization. This year, the company expects to expand its workforce “According to an Airbnb spokesperson. During the pandemic, Airbnb had a bad run. The hospitality app was forced to reduce its workforce due to a significant drop in revenue caused by a coronavirus-induced pandemic. Airbnb laid off nearly 1900 employees, accounting for roughly 25% of the company’s total workforce.
Airbnb’s CEO stated that the company was going through difficult times. “We are collectively living through the most harrowing crisis of our lifetime, and as it began to unfold, global travel came to a halt. Airbnb’s business has taken a hit, with revenue expected to be less than half of what it was in 2019. In response, we raised $2 billion in capital and drastically reduced costs in nearly every aspect of Airbnb.”
Airbnb announced in February that it had made more money than ever before, with $8.4 billion in revenue. This represents a 40% increase over the previous year, 2021. If foreign exchange rates are excluded, revenue growth is even higher at 46%. This was Airbnb’s first GAAP-compliant profitable full year (GAAP is a standard for financial reporting in the US). Airbnb’s adjusted EBITDA (profitability measure) was $2.9 billion, and their free cash flow (the amount of cash generated after expenses) was $3.4 billion. Both of these figures increased by 49% over the previous year.
This indicates that Airbnb was capable of performing better and generate more cash than previously, as the company explained in an abbreviated statement.
AIRBNB
Airbnb is a service that allows property owners to rent out their spaces to travelers looking for a place to stay. Travelers can rent a room for a group, a shared room with private rooms, or the entire property for themselves.
Airbnb is a service that allows property owners to rent out their spaces to travelers looking for a place to stay. Travelers can rent a room for a group, a shared room with private rooms, or the entire property for themselves.
