Airbnb, the popular online vacation rental marketplace, has announced that it will be reducing its recruiting staff as part of its ongoing efforts to cut costs and streamline its operations.
According to sources, the company will be letting go of around 15% of its recruiting staff, which amounts to dozens of employees. This move comes after Airbnb was forced to lay off 25% of its workforce, or about 1,900 employees, in May 2020 due to the impact of the COVID-19 pandemic on its business.
Airbnb’s business was heavily impacted by the pandemic, as travel came to a virtual standstill in many parts of the world. The company was forced to cancel millions of bookings and issue refunds to customers, while also dealing with a significant drop in new bookings. As a result, Airbnb’s revenue in 2020 was down by more than 30% compared to the previous year, and the company reported a net loss of $697 million for the year, its first annual loss since going public.
To cope with the challenging situation, Airbnb implemented a number of cost-cutting measures, including layoffs, pay cuts, and a hiring freeze. The company also shifted its focus to domestic travel, as people started to look for vacation options closer to home. However, even as the travel industry slowly starts to recover, it’s clear that Airbnb’s business has been permanently changed by the pandemic.
The decision to cut recruiting staff at Airbnb was likely driven by a number of factors. One of the main reasons was the company’s need to cut costs in the wake of the pandemic. With revenue down and no clear timeline for a return to pre-pandemic levels, Airbnb has been looking for ways to reduce its expenses. Additionally, the company has been rethinking its hiring strategy in light of the pandemic, slowing down its hiring efforts and focusing on retaining existing employees.
While Airbnb has been successful in disrupting the travel industry in recent years, the pandemic has put a significant dent in its growth trajectory. With revenue down and staff cuts underway, it’s unclear how quickly Airbnb will be able to bounce back from the pandemic. The company has acknowledged that it may take several years for travel to return to pre-pandemic levels, and it’s likely that the company’s hiring needs will shift as well.