Citing revenue declines, Airbnb cuts 25% of workforce • Hacker News Board

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

#461

Post by three_seagrass » Tue, May 05, 2020, 10:55 PM UTC

filoleg wrote: post #300

three_seagrass wrote: post #290

Earlier quoted context omitted.

Don't be fooled by the Q1 results that only cover a few weeks of the shutdown - FANGs are hurting too. 30 M unemployed and growing means no disposable income for consumer businesses, which in turn are shutting down and shrinking their spending on B2B services. The latter is delayed and won't be fully visible until Q3.

>which in turn are shutting down and shrinking their spending on B2B services You are assuming the scenario where consumer division was making a lot of money. For a lot of very successful B2B businesses, their consumer division exists mostly to make small gains, while acting primarily as a getaway or advertisement for their B2B offerings. You would be surprised to find out how much more revenue (and profits) a compan…

Microsoft isn't FANG, and even then, who do you think Microsoft's B2B customers serve and get their revenue from?

Even those that are still B2B eventually need cash flows from consumer businesses. Hence the statement that we won't fully realize the losses until Q3. Less spending by consumers depresses all businesses, some sooner than others, but FANGs are definitely hurting.

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

#462

Post by ransom1538 » Tue, May 05, 2020, 10:56 PM UTC

dominotw wrote: post #50

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…

I found COBRA to be extremely expensive. I instead enrolled in obamacare via job loss exception.

"Beneficiaries then have 60 days to inform the administrator whether or not they want to continue insurance coverage through COBRA."

If you are paying for COBRA you are doing it wrong. You take those 60 days to find private insurance. You basically get 2 free months of health insurance since you cancel on that 60 day mark and never pay. If on day 58 you need health insurance you pay COBRA. Otherwise - your new private insurance kicks in on day 60.

[Yes! You could have history of heart attacks and not find cheaper private insurance but I am hoping that isn't you!]

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

#463

Post by H8crilA » Tue, May 05, 2020, 10:56 PM UTC

jzl wrote: post #409

dilyevsky wrote: post #234

Earlier quoted context omitted.

They are probably double trigger rsus with 10y expiration

You mean if you're still an employee? I've read their RSUs have 7y expiration, which is part of the whole Airbnb IPO problem because the ones from 2014 will start expiring next year. But what's the window to exercise once you leave the company? I doubt it's until expiration.

Forgive my ignorance but how do RSUs expire? I thought those are just stocks?

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

#464

Post by kaybe » Tue, May 05, 2020, 10:58 PM UTC

grecy wrote: post #154

ping_pong wrote: post #53

I'm shocked that 2020 revenues will come in only 50% below 2019. I don't think anyone will be travelling for the bulk of this year, especially with the looming threat of potentially getting sick in a foreign country or away from your home. It will take 5+ years for them to get back the same level of inventory/hosts/customers as they had in 2019. Many hosts will foreclose on their rented properties during 2020 or conv…

You might be surprized how many people are "stuck" around the world right now, and are staying in Air B N B's waiting for all the closures to end. For example Argentina has cancelled ALL plane flights (in/out and domestic) until September.. and unless you have signed authority you can't even drive town to town. So anyone that was travelling there is now stuck, and are essentially forced to rent a place and stay put.…

So Germany basically collected all its citizens that could be found (and that wanted to) around the world back home last month, including chartered airplanes and special permission organized for them to travel to the airport (~200.000 people).

Is that unusual?

https://de.wikipedia.org/wiki/COVID-19-R%C3%BCckholprogramm_...

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

#465

Post by lonelappde » Tue, May 05, 2020, 11:00 PM UTC

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.

That works for people who build savings.

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

#466

Post by lonelappde » Tue, May 05, 2020, 11:02 PM UTC

_dps wrote: post #452

Beldin wrote: post #425

Earlier quoted context omitted.

NL: starting point is one month per year of employment. There's more detail to it, but that is the starting point. This compensation does not sound "vastly more generous", but not bad for those that were less than 5 years employed.

This is in practice just a deferred salary scheme. Since the mandate attaches an unavoidable additional liability to every year of employment, that will get rolled into the total cost of employment by accountants. So yes, when you collect the deferred salary it feels generous. But you were getting less salary up until that point in order to make the system solvent. One may well prefer this arrangement, but one can't…

How is it unavoidable? If the employee leaves on their choice, is severance paid?

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

#467

Post by dbaggerman » Tue, May 05, 2020, 11:02 PM UTC

jklein11 wrote: post #398

xenospn wrote: post #335

Earlier quoted context omitted.

It's really strange to me that companies in the US can just determine how much severance they're "willing" to pay. Why is it even up to them?

Most employees in the US are hired at will. This means that the companies are not obligated to continue to offer their employees work. Severance is usually paid by the employer so that the employee agrees to leave amicably and does not sue for wrongful termination. Which country do you live in? Is it common practice for all employees to have severance negotiated as part of an employment contract? What happens if the…

In Australia it's not negotiable. Our employment laws dictate what severance payment is required if a company is letting people go to reduce costs. Those laws don't apply if the employee leaves of their own accord, or if they are fired for other reasons.

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

#468

Post by three_seagrass » Tue, May 05, 2020, 11:02 PM UTC

remote_phone wrote: post #6

drwl wrote: post #3

Earlier quoted context omitted.

A lot of tech is getting hit, it seems like Airbnb is more in the spotlight

FANG is surviving, if not thriving. A lot of famous companies will disappear in the next 9 months. This feels a lot like the dotcom bust to me.

Q1 results only cover a few weeks of the lock down. FAANGs require consumers to continue spending, and with 30+ million unemployed, that's a lot less disposable income and piling debt.

We won't be able to fully see the results of the pandemic in the FAANGs until early Q3.

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

#469

Post by tenpies » Tue, May 05, 2020, 11:02 PM UTC

jdminhbg wrote: post #433

JMTQp8lwXL wrote: post #408

Earlier quoted context omitted.

The pandemic doesn't end simply because quarantine is lifted. People will seriously question flying or passing through airports, especially as case counts are getting worse while the restrictions are being lifted.

But the pandemic ends eventually, one way or another. The question is what happens at that point: bacchanal or hermitage.

I also find it really interesting that no one seems interested in pricing in a second wave of any size.

It doesn't even have to be global, just a regional second wave in a tourist hot spot could crush tourism globally.

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

#470

Post by seangrogg » Tue, May 05, 2020, 11:03 PM UTC

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?

Yep. That's what I had at Google. Was selling shares as soon as I acquired them (no issue with GOOG but I preferred more diversification). I recall there being some admin time needed (~2-3 months?) before I had access to said shares but as soon as I did all 2-3 months worth were "vested" and I started cashing out.