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Citing revenue declines, Airbnb cuts 25% of workforce

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Re: Citing revenue declines, Airbnb cuts 25% of workforce

#441

Post by afjl »

llamataboot wrote: post #415
afjl wrote: post #406

Earlier quoted context omitted.

I think it's highly unlikely...but I'd be very happy to be wrong, too. These highly-leveraged "new" companies and individuals make up only a portion of AirBnB-rented homes, which themselves are only a small portion of the entire housing market. There was a very recent interview or article with AirBnB's CEO where he (I'm sure he was fudging the numbers a bit) said only 1/3 of AirBNB homes are actually owned by these k…

1/3 is not a small number in this equation though!

It is a small number compared to the entire housing market.

Re: Citing revenue declines, Airbnb cuts 25% of workforce

#442

Post by ashtonkem »

baxtr wrote: post #317
toshk wrote: post #304

Earlier quoted context omitted.

Maybe but Im guessing there will be 1 to 3 months flights are open in summer and there will be lots of crazy partying and spending. (in Europe)

Oh yeah. I feel like there are going to be totally crazy parties popping up everywhere like there is no tomorrow. And then we will have a spike in births around Feb/Mar 2021

Oh yeah, there’ll be a baby boom, but it’ll all be first born children.

Re: Citing revenue declines, Airbnb cuts 25% of workforce

#443

Post by dickjocke »

jlbnjmn wrote: post #281
b212 wrote: post #264

Earlier quoted context omitted.

"Good point. If they're wanting to part ways with 25% of the workforce now, covering 3 months of full salary and 12 months of expensive healthcare, they must be expecting fundamental market shifts." Why? Can't they rehire the people they laid off during this period?

After rereading the article, it appears the layoffs are isolated to side projects. So it looks like just a healthy focus on the actual business. And for everyone previously asking why they needed so many employees, the answer is apparently they didn't.

Just because they've cut these projects or they're not generating revenue today doesn't mean they don't "need" them. What if the economy tanked in 2007 and Amazon decided to dissolve AWS?

Re: Citing revenue declines, Airbnb cuts 25% of workforce

#444

Post by julianeon »

jedberg wrote: post #400
sachdevap wrote: post #385

Earlier quoted context omitted.

Is revenue per employee some sort of standard measure in the industry?

It is now. It started when Facebook would make a really big deal about their productivity per employee as a way of showing the incredible efficiency of their technology. I worked at reddit at the time, and we laughed because ours was double Facebook's, despite the fact that we weren't even doing very well. But we also had very few people. So the calculation doesn't really work at very small numbers, and also doesn't…

There's been some talk about how reddit is seriously undervalued, and I'm leaning more towards believing it, now.

I know when I'm looking for an authoritative answer to something I often append 'site:reddit.com' to my search - and I think younger generations are, if anything, moving more in that direction.

Re: Citing revenue declines, Airbnb cuts 25% of workforce

#445

Post by nicbou »

rb808 wrote: post #338
keiferski wrote: post #10

Separated 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…

As a European, that isn't great. (options excepted). Usually I thought you get 14 weeks plus a month for every year of service, not a week.

Not to mention that losing health insurance coverage wouldn't be a concern.

Re: Citing revenue declines, Airbnb cuts 25% of workforce

#446

Post by freepor »

monktastic1 wrote: post #251
mav3rick wrote: post #238

Earlier quoted context omitted.

It happens at both F & G in FAANG.

Monthly vesting in the first year?

The only point of the one year cliff is to pay someone less, or keep a startup’s cap table clean. For a public company there would be no point.

Re: Citing revenue declines, Airbnb cuts 25% of workforce

#447

Post by deathanatos »

renewiltord wrote: post #142
sokoloff wrote: post #67

Earlier quoted context omitted.

If you started working at Boeing exactly a year ago and were leaving today, would you rather have been granted RSUs at a notional initial value of $371.60/sh or been granted options at a strike price of $371.60/sh?

Well, yeah, that's Boeing, but if I'm going to work at a startup I want options, I want lots of them, and I want a good strike price. After all, if it's not going to do damned well next year why am I even going there?

RSUs, as structured at companies I've been at, always have upside: you can sell them for the stock price, which is a least $0. At the worst, you make nothing. Tax is paid upon acquiring them by selling a number of the acquired RSUs to pay for the tax.

Options, however, can have downside: tax can't be paid with the excerised option itself, because you can't sell the exercised option. So you have to pay the tax out of pocket. Meanwhile, the company can go under, and render the options worthless: you've lost the tax amount. If the company's valuation increases significantly, the taxes can be fairly significant. But you also can't just wait to see if the company succeeds, either: every company I've been at forces you to exercise within a certain amount of time if you leave the company.

Re: Citing revenue declines, Airbnb cuts 25% of workforce

#448

Post by 75dvtwin »

chrisseaton wrote: post #438
arcticbull wrote: post #320

Earlier quoted context omitted.

Sounds amazing, I wish someone would lay me off like that, damn. Four months PTO with healthcare?!

Do you realise you have to find a new job within those four months?! It's not 'time off', it's time desperately searching for a new job until you start eating into your savings and your children end up starving.

What is the median salary of people who were laid off?

It is some how hard to believe that they will start starving within a year after a layoff (perhaps if they plan to maintain their expense levels unchanged, but still sounds very improbable)

What are the calculation that lead you to this conclusion ?

Re: Citing revenue declines, Airbnb cuts 25% of workforce

#449

Post by julianozen »

supernova87a wrote: post #249

If Airbnb is willing to pay 14 weeks (3.25 months) of severance, they must believe this is going to go on significantly longer than that. Or they're using this as an opportunity to cut underperformers at the same time. Because if they believed things would start to recover by fall, wouldn't you just pay the people as normal and make a judgement call around then? You're spending the payroll money either way -- 14 week…

Airbnb employee, opinions are my own.

You need to operate the company under the assumption that this will happen for a very long time, and that even afterwards people will think about travel differently

Re: Citing revenue declines, Airbnb cuts 25% of workforce

#450

Post by ghaff »

MereInterest wrote: post #363
ghaff wrote: post #326

Earlier quoted context omitted.

Larger companies tend to prefer weekly/biweekly as you don't get that month-length variance. On the other hand, many employees don't like it as much because their biggest bills tend to be paid monthly so they'd prefer their paychecks to be aligned.

I've had it both ways, and prefer it biweekly. That way, I can build my budget based on 2 pay periods, and have the occasional 3rd paycheck in a month go immediately toward savings.

I've had it biweekly including in my first "tech" job. I made enough that paying bills wasn't really an issue and having the "extra" paycheck for savings seemed almost like free money towards savings/paying off loans.

On the other hand, I understand people who are on tighter budgets who would rather have their revenue better aligned with their expenses rather than having to balance them on their own.

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