World is going through hard times, economy of countries are falling, share markets are crashing. In such time companies around the world do not have enough to pay their employees, so people are getting unemployed worldwide. The layoff is never an easy thing for companies to do. As tourism is the worst hit sector by Coronavirus, so companies are like Airbnb are struggling to plan their strategies to survive this economic shock. The layoffs are now using as shock absorbent by the companies. But the 25 percent layoff done Airbnb could be example for others.
Airbnb Co-Founder and CEO Brian Chesky sent the following note to Airbnb employees which reads “We are collectively living through the most harrowing crisis of our lifetime, and as it began to unfold, global travel came to a standstill. Airbnb’s business has been hit hard, with revenue this year forecasted to be less than half of what we earned in 2019. In response, we raised $2 billion in capital and dramatically cut costs that touched nearly every corner of Airbnb”. He added “ Travel in this new world will look different, and we need to evolve Airbnb accordingly. People will want options that are closer to home, safer, and more affordable. But people will also yearn for something that feels like it’s been taken away from them — human connection. When we started Airbnb, it was about belonging and connection. This crisis has sharpened our focus to get 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”.
Brian said that now world is full of uncertainty, no one knows when things will get normal, so Airbnb has to reduce expenditure. But while making employees leave, Brian offered them a generous goodbye. Employees in the US will receive 14 weeks of base pay and one additional week for every year at Airbnb. Also the tenure of the employees would be rounded up to the nearest year, so in this manner employee will receive extra pay. Brian’s note says “ We are dropping the one-year cliff on equity for everyone we’ve hired in the past year so that everyone departing, regardless of how long they have been here, is a shareholder. Additionally, everyone leaving is eligible for the May 25 vesting date”. Apart from these offers Airbnb is also helping its laid off employees in searching new job. These employees are also allowed to keep the company’s apple laptop. He also left message for those who are leaving which reads “ I am truly sorry. Please know this is not your fault. The world will never stop seeking the qualities and talents that you brought to Airbnb…that helped make Airbnb. I want to thank you, from the bottom of my heart, for sharing them with us”.