Airbnb CEO Brian Chesky sent a note to his staff on Tuesday morning saying he had to “share some very sad news.”
He was letting them know that the home rental company had decided to layoff around 25% of its employees, which is roughly 7,500 people. It’s one of the largest single layoffs by a Silicon Valley company since the novel coronavirus pandemic sent the world reeling.
“When you’ve asked me about layoffs, I’ve said that nothing is off the table,” Chesky wrote. “This is incredibly difficult to confront, and it will be even harder for those who have to leave Airbnb.”
Airbnb has experienced a financial hit during the pandemic. It’s seen tens of thousands of canceled reservations and plummeting revenue. The company was on track for an initial public offering this spring, but reportedly postponed those plans.
“We are collectively living through the most harrowing crisis of our lifetime, and as it began to unfold, global travel came to a standstill,” Chesky wrote. “Airbnb’s business has been hit hard, with revenue this year forecasted to be less than half of what we earned in 2019.”
He added that Airbnb made the decision to layoff its workers because it’s unclear when people will start traveling again and when they do, “it will look different.”