Expecting slower growth in 2023, Airbnb Inc. has announced that it will cut recruiting roles across its workforce. The company said Friday that it had cut about 30% of its staff, but a representative confirmed to Reuters that restructuring does not mean more layoffs to come.
The announcement follows an Airbnb warning to investors that it would need to protect its cost structure following its first-ever annual profit in 2022, which was attributed to declining average daily rates. While the company remains profitable, it is taking proactive steps to ensure sustainable growth.
This move to reduce recruiting roles follows significant workforce reductions in 2020, when Airbnb laid off nearly 1,900 employees, representing 25% of its workforce, due to the COVID-19 pandemic. The pandemic’s impact on global travel has had an enduring effect on Airbnb’s business and hiring practices. Reuters quoted an Airbnb spokesperson who said the company has “become a leaner and more focused company over the last three years.”
The Wall Street Journal reports that Airbnb is projecting a much smaller headcount growth range of 2% to 4% in 2023. If the projection is accurate, it would be a significant decrease from the 11% headcount growth experienced in the previous year. However, the company reportedly remains optimistic about its future and is focused on delivering great travel experiences to guests and hosts worldwide.