Airbnb Cuts 25 Percent of Workforce and Downsizes Hotel Investments
A new and more-focused Airbnb is emerging out of the coronavirus crisis.
Airbnb announced Tuesday it cut 25 percent of its payroll, around 1,900 employees, will reduce its investment in hotels and Airbnb Luxe, and will "pause" efforts in transportation, including flights, and Airbnb Studios.
"This crisis has sharpened our focus to get back back to our roots, back to the basics, back to what is truly special about Airbnb — everyday people who host their homes and offer experiences," co-founder and CEO Brian Chesky said in an email to employees that Airbnb released.
In the lead-up to Tuesday's announcement, one issue for Airbnb was whether it could still pursue a strategy to be a super brand of travel, with a wide range of offerings, or whether it would refocus on the business that got it to this juncture.
Chesky had talked about co-founding Airbnb about a decade ago, and not envisioning becoming a real estate company. That was a reference to real estate plays from companies such as Sonder and Lyric, which counts Airbnb as an investor, and the proliferation of hosts on its platform with dozens of listings, and operating quasi-hotel operations.
