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Airbnb in Mexico will only accept reservations for medical personnel 0:53
New York (CNN Business) - Airbnb will lay off about 25% of its workforce as the coronavirus pandemic is turning the travel industry around and threatening the company's core business.
On Tuesday, the short-term rental company said nearly 1,900 employees will be laid off worldwide, out of 7,500.
"We are collectively experiencing the most heartbreaking crisis of our lives and, as it began to unfold, global travel has come to a standstill," said Airbnb CEO and co-founder Brian Chesky in a letter to employees.
He added that the Airbnb business has been "hit hard" and this year's revenue is expected to be less than half of what the company earned in 2019.
The company has recently dabbled in virtual versions of its Airbnb Experiences, which feature leading activity hosts in 30 countries and a price range of $ 1 to $ 40. Experiences include virtual bike tours, meditating with a Japanese monk, or taking a Moroccan cooking class.
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Airbnb has also delayed plans for a Wall Street debut this year.
In the United States, Airbnb said it will cover 12 months of health insurance for its employees through COBRA. In all other countries, it will cover health insurance costs until the end of this year.
The layoffs have spread across the economy as a result of the pandemic, and tech companies have not been spared, with cuts and permits at Lyft, Yelp, Eventbrite, and rumors of layoffs at Uber.
"I have a deep feeling of love for all of you," Chesky wrote in the letter. "I'm really sorry. Please know this is not your fault. The world will never stop searching for the qualities and talents that brought Airbnb. ”
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Airbnb has also grappled with appeasing frustrated customers with rebates, and supporting their hosts, many of whom are struggling to make mortgage payments and pay bills due to coronavirus-related cancellations.