Anderson: Local Airbnb spared from global staff cut

WESTERN BUREAU:

Unlike some of their global counterparts, Sherie-Ann Anderson, head of the Homesharing Association of Jamaica (HAJ), says local Airbnb and other homesharing accommodations hosts will not be affected by Airbnb’s decision to lay off 25 per cent of its employees worldwide.

“This will not directly affect operations in Jamaica. Airbnb will continue to respond to hosts on their main social channels and through the community support team,” explained Anderson, who noted that the process was done to ensure the viability of the sector in the long term.

Brian Chesky, Airbnb’s chief executive officer, said 25 per cent or 1,900 employees globally will be laid off as the homesharing accommodation sector has been taking a major hit from the dreaded coronavirus, which has sparked a worrisome downturn in the global economy.

“Today, I must confirm that we are reducing the size of the Airbnb workforce. For a company like us, whose mission is centred around belonging, this is incredibly difficult to confront, and it will be even harder for those who have to leave Airbnb,” Chesky said in a message to employees on Tuesday.

“Out of our 7,500 Airbnb employees, nearly 1,900 teammates will have to leave Airbnb, comprising around 25 per cent of our company. Since we cannot afford to do everything that we used to, these cuts had to be mapped to a more focused business,” continued Chesky.

Stay afloat

However, in speaking to the local situation, Anderson said local stakeholders will be working together to ensure that they collectively stay afloat.

“This change will not have an immediate impact on hosts. The Jamaica Homesharing Association will continue to support each host as valued members of the Airbnb community as well as other homesharing platforms,” Anderson told The Gleaner.

Airbnb provides hospitality services in partnership with local and international property owners through a marketplace that connects travellers who don’t want to stay in a hotel or hostels.

“Airbnb’s business has been hit hard, with revenue this year forecasted to be less than half of what we earned in 2019 … we raised $2 billion in capital and dramatically cut costs that touched nearly every corner of Airbnb,” stated Chesky.

Chesky said that while it will be hard on employees who are leaving the company by way of the layoff, a severance package has been prepared to cushion the fallout.

“Employees in the US will receive 14 weeks of base pay, plus one additional week for every year at Airbnb. Tenure will be rounded to the nearest year,” stated Chesky. “If someone has been at Airbnb for three years and seven months, they will get an additional four weeks of salary, or 18 weeks of total pay. Outside the US, all employees will receive at least 14 weeks.”