Airbnb lays off 30% of recruiting staff

Airbnb

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Airbnb, an online hospitality giant has laid off 30% of its recruiting staff, Bloomberg News reported. The cuts impacted 0.4% of Airbnb’s total workforce, which currently stands at 6,800 employees. This move comes as the company plans to increase its headcount this year. An Airbnb spokesperson stated, “We’ve become a leaner and more focused company over the last three years. The company expects to grow its headcount this year.” The spokesperson further added that Airbnb is going to continue to grow, but at a modest pace.

Last year, in response to the pandemic, Airbnb laid off 25% of its workforce or roughly 1,900 employees. However, during the company’s quarterly earnings call last month, CFO Dave Stephenson said the company plans to hire more people this year. He expects the headcount to grow between 2% and 4% this year, a significantly slower rate compared to 2022 when the headcount grew by 11%.

Despite the layoffs and slower headcount growth, Airbnb reported a 24% revenue growth in Q4 of 2022, with $319 million in net income for the quarter, up from $55 million a year earlier. In its shareholder letter, Airbnb said it expects to continue hiring at a “judicious pace” in 2023. The company is “particularly encouraged” by market share gains in Latin America and continued recovery within Asia Pacific.

Airbnb’s latest move to lay off recruiting staff could be seen as a sign of cost-cutting measures. However, the company’s revenue growth and plans to increase headcount suggest that it remains optimistic about its future prospects. It is worth noting that the travel industry has been heavily impacted by the pandemic, with many players struggling to recover. Nonetheless, Airbnb’s strong financial performance in the fourth quarter of 2022 shows that it has managed to weather the storm and is poised for growth in the coming years.

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