Plunge in Travel Leads to Mass Company Layoffs

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As travel has stalled across the U.S., technology companies like Uber, Lyft, and Airbnb have been hit hard. These companies are laying off thousands of employees in an effort to stay afloat.

According to Business Insider, Uber is preparing to lay off thousands of workers this week. This follows job slashes that took place just two weeks earlier, when Uber announced it would lay off 3,700 employees, about 14% of its workforce. 

Uber CEO, Dara Khosrowshahi, has forgone his base salary for the rest of the year.

On May 5, Airbnb announced it was laying off 25% of its workers, or 1,900 people.

“We are collectively living through the most harrowing crisis of our lifetime, and as it began to unfold, global travel came to a standstill. Airbnb’s business has been hit hard, with revenue this year forecasted to be less than half of what we earned in 2019," said Airbnb CEO Brian Chesky in a company-wide announcement.

On April 29, Lyft announced it was laying off 17% of its workforce, or just under 1,000 people. The company also furloughed an additional 288 employees.

“Our guiding principle for decision-making right now is to ensure we emerge from the crisis in the strongest possible position to achieve the company’s mission," said Lyft  (LYFT) - Get Report CEO Logan Green of the decision.

Globally, the travel industry could see over 100 million jobs lost this year, according to the World Travel and Tourism Council.

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