World News13 Touko 2020

1,900 Airbnb Employees Lose Jobs to Pandemic

Welcome to the World news. World news keeps you updated news around the nations.

Today's topic is "1,900 Airbnb Employees Lose Jobs to Pandemic"

Airbnb is laying off 1,900 of its 7,500 workers as the coronavirus pandemic causes a huge decrease in global travel.

In a letter to its employees, CEO Brian Chesky said the company is also getting rid of parts of its business that don't directly support home-sharing. Those include its investments in hotels, air travel and movies.

Airbnb expects its revenues to fall by more than half this year. It is a private company, so it does not share its financial figures. But AirDNA, which monitors bookings with Airbnb and other similar companies, said new US bookings fell by 53% between February 3 and April 13. Some countries are also not allowing any non-essential travel or are only letting medical workers book with Airbnb.

Only a few months ago, the company was valued at $31 billion, and was planning an initial public offering. The 12-year-old company has around 7 million homes on its website.

Chesky said travel will return after the pandemic, but it will look different. For example, Airbnb expects travelers will want options that are cheaper and closer to home.

Chesky recently angered many hosts when he told guests they could cancel their bookings for free because of the pandemic.

In early April, Airbnb agreed to pay hosts $250 million to pay back some of the money they lost from cancellations. And it is now only letting people who were planning to check in by June 15 cancel for free.

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