Tech Firm Frontdesk layoff 200 People Via 2 Minute Google Meet Call

America based startup expelled 200 people from the company in 2 minutes! Its name is Frontdesk which has made its first major layoff of the year. Reportedly, an online call was made by the company to the employees whose duration was only 2 minutes. During the virtual call, the company fired 200 people. The fired employees included people working full time, part time and on contract.

Frontdesk had a two-minute Google Meet call with employees. Company CEO Jesse DePinto told employees that the company's financial condition is not good, and the company is considering filing state receivership. According to the NDTV report, the company leases apartments at market rates and also furnishes them on short-term rental basis. Its business is spread in more than 30 markets. But the company is struggling due to upfront costs, capital expenditure, and fluctuations in demand and rates.

The company raised $26 million with investors like JetBlue Ventures and Veritas Investments but still could not attract investors for full building management. The company was established in 2017. It manages more than 1000 furnished apartments in America. Recently the company had taken over a smaller rival company named Zencity, but after just seven months the company had to face layoffs.

Frontdesk laying off such a large number of employees also raises questions over the survival of other small companies operating in the short-term rental sector. Recently, Paytm gave a big blow to its employees and fired more than 1000 people. According to the report, Paytm has made layoffs to reduce costs. Not only this, in the coming time many more people may lose their jobs from Paytm. The latest layoffs are the result of a few months of people being laid off from various units of Paytm. This is said to be 10 percent of the total workforce of the company. This layoff has been counted as one of the biggest layoffs of the year 2023.