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

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

#601

Post by elihu » Wed, May 06, 2020, 1:25 AM UTC

meddlepal wrote: post #588

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?

I mean, as an American... I'm not even sure why companies give severance pay in the first place. It doesn't feel like something they should be obligated to do.

I'd guess it's mostly to maintain morale among the remaining employees. People who are on the fence between staying or leaving are a bit more likely to stick around if they know they'll get a severance package if they're laid off but nothing if they quit.

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

#602

Post by ptero » Wed, May 06, 2020, 1:26 AM UTC

jdminhbg wrote: post #309

ashtonkem wrote: post #259

Earlier quoted context omitted.

I personally suspect that travel related industries will be one of the last to recover, both due to consumer reticence and due to lower levels of disposable income during the recovery.

> lower levels of disposable income during the recovery. There's also going to be a lot of pent-up demand from people who didn't lose jobs and had no outlet for leisure spending during the quarantine. I'm not sure which will win out.

Many folks are booking family vacations like crazy using current low prices and hoping to leverage rebooking flexibility. So there will definitely be at least some pent-up demand. This demand could evaporate though if folks who consider their jobs safe start feeling insecure.

But I think that if the leisure travel collapses it would be because of the economic declines, not medical risks. My 2c.

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

#603

Post by weaksauce » Wed, May 06, 2020, 1:28 AM UTC

lonelappde wrote: post #472

tlrobinson wrote: post #410

Earlier quoted context omitted.

I believe it's just the full cost of the plan you were already on, the sum of what you and your employer were paying for it. So it can be expensive if your employer was paying a lot for it.

It can seem expensive if you ignored the compensation your employer was paying while you were employed.

for someone that just lost their job having to pay basically double what you were paying for health insurance it certainly is expensive from their pov. health care in america is not something any other country would ask to have save some esoteric elective surgery out of pocket if you are rich.

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

#604

Post by PalsSolmeni » Wed, May 06, 2020, 1:29 AM UTC

This hit me hard for some reason and really put things in perspective. You can never take your career for granted and assume it's guaranteed.

The lesson I took from this is to always have a backup plan in case of unforeseen events.

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

#605

Post by wolco » Wed, May 06, 2020, 1:31 AM UTC

eru wrote: post #593

wolco wrote: post #551

Earlier quoted context omitted.

Under the rules you live in you are not. Why is it a good idea? Employees less likely to leave without notice. Employees stay longer because the safety net grows. Less likely to speak poorly about you after leaving More secure in their job. More emotional invested. What are your reasons for not? Even if google stops selling at home they will keep the server alive for a grace period. I had a friend who ran a bitcoin m…

Those are all good arguments for voluntarily paying for severance, or to agreeing to such a payment upfront in the employment contract. But they are no reason to legally require severance pay.

I agree completely unless required by law.

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

#606

Post by 75dvtwin » Wed, May 06, 2020, 1:32 AM UTC

chrisseaton wrote: post #475

75dvtwin wrote: post #448

Earlier quoted context omitted.

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 ?

Not everyone manages to negotiate the same high tech salaries even if it looks like they're working for a prestigious company It may take a very long to find new work. People have mortgages that they may struggle to afford long term - or at all if they can't find a job with the same salary, meaning they could have to sell their homes. Some people have debts for whatever reason out of their control. Some people have m…

that's true. Not everyone.

Even people who are employed can go broke, declare bankruptcy, and not being able to pay for their previously-enjoyed lifestyle anymore.

The financial security ladder has many steps.

Hard to imagine that programmers, product managers, SREs that had successfully passed AirBnB interviews would be so close to the bottom of that ladder, that their children will go hungry within months of stopping to receive the severance.

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

#607

Post by TylerE » Wed, May 06, 2020, 1:33 AM UTC

eru wrote: post #592

tialaramex wrote: post #576

Earlier quoted context omitted.

It cuts both ways. I live in the UK. Here the obligation is symmetric. All my recent work has been on 90 day terms. That is, if either I or the employer wish the contract to end normally that requires 90 days of notice unless both parties agree otherwise. My most recent employer decided their costs were too high compared to projected income, so they gave me 90 days notice back in 2019. At that point I knew that in 90…

Gardening leave is quite common in the US. No sure whether the term itself is known, though? Paying out a notice period is very different from severance pay. I can assure you that AirBnB does not have a 14 weeks notice period. (American companies also pay you out the notice period, and some send you on gardening leave, if they want you out of the office. But notice periods in America seem to be generally shorter, lik…

There is no right to the notice period in the US. They can fire you on the spot.

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

#608

Post by chrisseaton » Wed, May 06, 2020, 1:34 AM UTC

75dvtwin wrote: post #606

chrisseaton wrote: post #475

Earlier quoted context omitted.

Not everyone manages to negotiate the same high tech salaries even if it looks like they're working for a prestigious company It may take a very long to find new work. People have mortgages that they may struggle to afford long term - or at all if they can't find a job with the same salary, meaning they could have to sell their homes. Some people have debts for whatever reason out of their control. Some people have m…

that's true. Not everyone. Even people who are employed can go broke, declare bankruptcy, and not being able to pay for their previously-enjoyed lifestyle anymore. The financial security ladder has many steps. Hard to imagine that programmers, product managers, SREs that had successfully passed AirBnB interviews would be so close to the bottom of that ladder, that their children will go hungry within months of stoppi…

Something that scares me is that tech interviews are so fickle. You could pass the Google interview one day but be rejected by everywhere else the next.

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

#609

Post by KoftaBob » Wed, May 06, 2020, 1:34 AM UTC

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 vastly underestimate how little of a shit is given by Millennial and Gen Z travelers.

Outside of the bubble of Bay Area and North East tech industries, a lot of younger people couldn’t care less, especially when seeing how insanely low the mortality/hospitalization rate is for their age group. Before I get the lecture, I know that them spreading it is also a risk, spare me.

People who think no one is going to travel this summer are deeply deeply entrenched in their preachy sanctimonious echo chamber of friends. Go look at how many young people were having picnics in groups at NYC parks this past weekend and then tell me no ones going to travel this summer. Get real.

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

#610

Post by outside1234 » Wed, May 06, 2020, 1:36 AM UTC

blackoil wrote: post #571

11thEarlOfMar wrote: post #553

Earlier quoted context omitted.

In many countries, there is no concept of 'at will employment'. It is not surprising that HNers from such countries would be incredulous. Employment law in Europe, for example, frequently requires the severance terms to be determined at the time the employee is signed up. The employment agreement is a contract, and will be signed by all positions in the firm. In many cases, the severance terms are based on law. Among…

>Among other differences, for example, a German President is personally liable for the financial obligations of their company. If the company goes bankrupt, so does he. In US new enterprise have a very high failure rate, how do entrepreneurs survive in such environment?

They move to the United States and take their companies there.