Rental company Airbnb is laying off 25% of its employees as the coronavirus pandemic ravages the travel industry.
The startup’s CEO announced the layoffs in an email to workers on Tuesday. Brian Chesky, who is also one of the company’s co-founders, said that the business has been “hit hard” during the health crisis, and revenue is predicted to be half of what it was last year.
“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 said in the letter, according to CNN Business.
Airbnb, which allows people to rent out rooms or residences for any given period of time, said it plans to provide employees in the United States 12 months of health insurance through the Consolidated Omnibus Budget Reconciliation Act and employees abroad insurance through the end of the year.
“I have a deep feeling of love for all of you,” Chesky said. “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.”
Early on in the crisis, the company announced that it would provide each host 25% of the business they lost because of cancellations and set aside $250 million for the move. Airbnb also said it would give subsidized or free housing to 100,000 healthcare workers so that they could move closer to the hospital where they are working.
The pandemic has wreaked havoc on the hotel and travel industries. At the beginning of April, a research group found that more than three-quarters of U.S. hotel rooms were vacant at the time.
