I can only hope this leads to a backlash against high growth companies staying private for so long. Along with their jobs, I imagine many AirBnb employees have lost a majority of their (paper) net worth because they were not given the opportunity to sell and diversify.
Citing revenue declines, Airbnb cuts 25% of workforce
161–170 of 936 posts
Re: Citing revenue declines, Airbnb cuts 25% of workforce
#162Separated employees will receive 14 weeks of pay, and one more week for each year served at the company (rounding partial years up). The firm is also dropping its one-year equity cliff so that employees who are laid off with under 12 months of tenure can buy their vested options; Airbnb will also provide 12 months of health insurance through COBRA in the United States, and health care coverage through 2020 in the res…
Glad to see the money they are stealing from those of us who can't cancel our summer airBNBs is going to a good cause.
Is it just a certain time period? I've cancelled two stays and have received full refunds, but both were in April and May of this year.
Re: Citing revenue declines, Airbnb cuts 25% of workforce
#163for everyone praising the severance package, laid off employees at kickstarter are getting even more severance and full healthcare (not COBRA) because they unionized: https://twitter.com/ksr_united/status/1256382357311012871
that is a pretty good severance. I was laid off from an ad-tech company based in SF in April and received 4 weeks of pay (I had worked there for almost 2 years)
Re: Citing revenue declines, Airbnb cuts 25% of workforce
#164Earlier quoted context omitted.
1 RSU is worth 1x the stock price. 1 option is worth the delta between the stock price and the strike price, meaning 1 RSU is always worth more than one option. Usually you get more options than you would RSU’s to compensate for this, but there’s still a risk/reward tradeoff. I have had stock options that ended up worth $0 because they were underwater. RSU’s would have been worth $non-zero. The fact that RSU’s retain…
The other relevant point, in favor of RSUs is they usually have a double trigger for settling. One is service time, and the second is an equity event. Which is nice because you basically earn the RSU based on service time, but it doesn't truly settle until there's a liquid market available to dispose enough shares to cover tax liabilities. This is why you'll see recently IPO'd companies reporting large one-time equit…
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Re: Citing revenue declines, Airbnb cuts 25% of workforce
#165Separated employees will receive 14 weeks of pay, and one more week for each year served at the company (rounding partial years up). The firm is also dropping its one-year equity cliff so that employees who are laid off with under 12 months of tenure can buy their vested options; Airbnb will also provide 12 months of health insurance through COBRA in the United States, and health care coverage through 2020 in the res…
> Separated employees
Separated? Is this American english?
Re: Citing revenue declines, Airbnb cuts 25% of workforce
#166Earlier quoted context omitted.
A lot of tech is getting hit, it seems like Airbnb is more in the spotlight
Why do people consider AirBnB tech? They are a services company with a website connecting external parties. This isn't hard tech, this is marketing. Edit: It seems people are under the impression that because you have lots of technology that is required to run your company you are a technology company. I don't believe that to be true in this day and age, tire distributors probably have more technology requirements th…
My personal take on what defines a "tech company" is a company that understands and respects that tech drives its business and thus treats its tech employees with respect.
Almost every large company is tech driven these days. But in a lot of them, tech is considered more of a necessary evil "cost center". The tech employees are treated as second class citizens compared to the marketers, salespeople, traders, etc. who are the "profit center".
A big investment bank (disclosure: I work at one) arguably has more tech running through its veins these days than say, Airbnb. But I would firmly classify Airbnb as a "tech company" per the above definition, and the bank as "not a tech company".
Re: Citing revenue declines, Airbnb cuts 25% of workforce
#167Earlier quoted context omitted.
Yes, but instead of buying several AirBnBs, they could instead buy dozens of smaller startups that are not operating in the hospitality industry - which is going to recover much slower than most forms of B2B or B2C.
Those industries would also be hurting less which means a smaller discount. Meanwhile, long-term prospects for AirBnb have not changed. Disease existed before COVID and will exist after COVID.
The mass tourism boom in the year prior to Covid19 might not be the new normal.
Re: Citing revenue declines, Airbnb cuts 25% of workforce
#168Earlier quoted context omitted.
It's not, people just love shitting on America. 14 weeks + 1 additional for each year served at US salaries + unemployment + paid health insurance for 12 months is extremely generous compared to the peanuts that Europe pays engineers.
Unless you realize that you're comparing severance package of one of top US companies to EU standard.
the original comment was specifically saying AirBnBs severance isn’t impressive compared to europe, which is not true.
Re: Citing revenue declines, Airbnb cuts 25% of workforce
#169Earlier quoted context omitted.
Glad to see the money they are stealing from those of us who can't cancel our summer airBNBs is going to a good cause.
Is it just a certain time period? I've cancelled two stays and have received full refunds, but both were in April and May of this year.
Mine is late June / Early July in Italy of all places, and is not covered. They keep extending the coverage period though so I'm crossing my fingers.
Re: Citing revenue declines, Airbnb cuts 25% of workforce
#170Separated employees will receive 14 weeks of pay, and one more week for each year served at the company (rounding partial years up). The firm is also dropping its one-year equity cliff so that employees who are laid off with under 12 months of tenure can buy their vested options; Airbnb will also provide 12 months of health insurance through COBRA in the United States, and health care coverage through 2020 in the res…
I’m surprised they were still handing out options - don’t most later stage startups switch to RSUs? I’d hate to have to decide whether to exercise today, cliff or no cliff.
They're RSUs, Airbnb hasn't been given options for the last 7 years or so. Techcrunch is just reporting it wrong.