Airbnb has announced that it has cut 25% of its payroll, losing around 1,900 employees, and will reduce its investment in hotels, Airbnb Luxe, flights, and Airbnb Studios.
Previously co-founder and CEO Briaqn Chesky had talked about the platform moving away from becoming a real estate company, a reference to companies such as Sonder and Lyric and the rise in hosts on its platform with vast numbers of listings as quasi-hotel operations.
The platform is also downgrading its focus on hotels and luxury properties, reducing its investment in activities that do not directly support the core of its host community.Airbnb will keep operating recent acquisition HotelTonight, but won’t be adding new hotel properties to its platform.
The messages to employees said that even after raising more than $2 billion in capital recently, it still has to drastically reduce costs because there is no certainty of a coronavirus recovery nor what the future will look like.
For now, the IPO is on hold.