US startup Frontdesk lays off entire staff over 2-minute 'Google Meet call'
By Team Asianet Newsable | First Published Jan 3, 2024, 5:32 PM ISTIn a shocking turn of events, online rental platform Frontdesk has made headlines as the first tech startup to initiate mass layoffs in 2024. The proptech company reportedly laid off its entire 200-person workforce during a succinct two-minute Google Meet call.
In a shocking turn of events, online rental platform Frontdesk has made headlines as the first tech startup to initiate mass layoffs in 2024. During a "two-minute Google Meet call," online rental business Frontdesk became the first digital startup to fire all 200 of its staff in 2024. The layoffs included full-time, part-time workers and contractors and the proptech startup is now on the verge of shutting down, TechCrunch reported on Wednesday.
Jesse DePinto, CEO of Frontdesk, reportedly informed staff members that the business will be "filing for a state receivership, an alternative to bankruptcy." This unexpected move has sent ripples through the startup community, prompting discussions about the challenges faced by emerging tech companies, particularly those in the proptech sector.
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Founded in 2017, the startup managed more than 1,000 furnished apartments across the US. Frontdesk had raised about $26 million from investors such as JetBlue Ventures, Veritas Investments and Sand Hill Angels. It has been reported that Frontdesk, which leases and furnished apartments for short-term rentals in over 30 markets, recently made an attempt to secure investors by proposing a new plan for full building management, but that did not go well with investors. The startup aimed to raise fresh capital but failed in its attempt.
Over 425,000 employees from IT businesses, including startups, were let go globally in the previous two years, with over 36,000 of those terminations occurring in India. In 2023, nearly 2.6 lakh employees were laid off in the global technology and startup sector.
Citing the global macroeconomic conditions, big tech firms and startups across the spectrum have sacked employees, and layoffs continue to happen.
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