Technology

Airbnb Layoffs Expose Inequities in a Two-Tiered Workforce

While employees got generous severance packages, contractors—many of them people of color—were left out.

Shiva Kumar, a former Airbnb contract worker.

Photographer: Ryan Young for Bloomberg Businessweek
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This was supposed to be Airbnb Inc.’s big year. There were plans for a blockbuster share listing and expansion of a new ultraluxury holiday business. Instead, a global pandemic decimated travel, and the company had to sack 25% of its workforce, or about 1,900 employees.

Those layoffs, announced in May, weren’t the worst of it. Questions are swirling around Airbnb’s culture after it was reported that about 500 contract workers were quietly let go two weeks earlier, without any of the perks or fanfare—many of them people of color. The move clashed with how Airbnb likes to portray itself. Its slogan is “Belong Anywhere,” and it’s made prominent donations to the Black Lives Matter movement. After George Floyd’s death in Minneapolis, Airbnb sent a message to its U.S.-based hosts and guests urging them to watch the video of the killing even if it made them uncomfortable. The overall message: Be an active ally.