Airbnb smashed from pillar to post

With the global tourism industry in turmoil, Airbnb has axed one-quarter of its global workforce:

In the note, written by Airbnb CEO and co-founder Brian Chesky, the company said that 1,900 employees will be laid off, or 25.3% of its 7,500 workers. The layoffs will impact a number of internal product groups, including Transportation and Airbnb Studios, efforts that will be placed on hold, and its Hotels and Lux work, which will be “scale[d] back”…

According to Chesky’s missive, Airbnb anticipates its 2020 revenue coming in under 50% of 2019’s total; Airbnb saw around $4.8 billion in revenue last year, according to reports.

In Australia, we’ve heard multiple reports of Airbnb’s being returned to the long-term rental market, which has driven up rental supply.

According to Statista, there were 59,926 and 95,350 short-term rentals in Melbourne and Sydney in 2018:

Thus, the impact on the rental market will be significant, especially in inner-city areas. And this comes at the same time as immigration (including international students) collapses.

When combined with heavy job losses, property rents are facing big falls.

Leith van Onselen
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