Airbnb Layoffs 2023: What to Know About the Latest ABNB Job Cuts
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The trend of tech companies laying off is now closing Airbnb (NASDAQ:ABNB). The homestay and accommodation innovator has made small-scale downsizing and laid off 30% of its recruitment department. While that doesn’t sound like a small number, investors need to see the bigger picture. Airbnb’s layoffs affected just 0.4% of the company’s total workforce. That’s a tiny fraction compared to the 8% Eventbrite (NYSE:EB) plan to lay off, or the 8% Waymo has already let go. Layoffs sometimes signal a company is in trouble, but that’s not how investors should interpret the news.
It’s true that Airbnb has long avoided downsizing, as many of its tech-sector competitors have opted for downsizing. But as a spokesman for the company being spoken to Bloomberg stressed that this decision was “not indicative of more widespread layoffs”. This suggests that Airbnb’s layoffs are indeed part of the company’s strategic growth plan for the coming year.
Let’s dive deeper into what investors should expect as the company moves forward.
The Airbnb Layoffs: A Closer Look
Job cuts don’t always push share prices higher, but ABNB stock isn’t reacting badly to this news at all. On the contrary, shares are up nearly 2% today as news of Airbnb’s layoffs continues to trend. The company has had an overall stellar year, up 50% year-to-date (YTD) after 2020 saw the travel sector plummet. As Bloomberg Reports:
“Airbnb made painful layoffs and restructuring decisions in the early days of Covid-19, cutting about 25% of its staff. Chief Executive Officer Brian Chesky said late last year that the state of the economy will not affect how the business is run. Chief Financial Officer Dave Stephenson said in the company’s latest earnings announcement that it still sees room for hiring.”
Last month, Stephenson stated that while the company will grow slightly in 2023, it will still grow. Airbnb’s layoffs should only be viewed as part of the company’s growth plan. It will likely use the funds freed up by the layoffs to hire in a variety of areas that may contribute even more to growth. The company still has solid fundamentals and has plenty of room for growth in 2023, despite job cuts.
At the time of publication, Samuel O’Brien held no position (neither directly nor indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publicity guidelines.