With this, FrontDesk has become the first startup to do layoffs in the year 2024. Frontdesk CEO has announced that the startup will file for state receivership as an alternative to bankruptcy. Founded in 2017, FrontDesk had raised about $26 million in funding from investors such as JetBlue Ventures, Veritas Investments and Sand Hill Angels
Layoffs: A startup fired its entire staff of 200 people in one fell swoop over a 2-minute Google Meet call. This is the incident of Frontdesk. FrontDesk, a property technology startup, manages more than 1,000 furnished apartments in the United States. It provides temporary housing facilities to the travelers. According to a report by TechCrunch, FrontDesk laid off its entire workforce of 200 people after failing to secure additional funding. This happened during just a 2-minute virtual meeting. In this meeting, CEO Jesse DePinto informed the employees about the layoffs.
With this, FrontDesk has become the first startup to do layoffs in the year 2024. Just 7 months ago, this startup had purchased its smaller rival Zencity. According to a report, FrontDesk is operational in 30 US markets with 1200 units in 170 buildings.
Will apply for state receivership
FrontDesk, founded in 2017, had raised about $26 million in funding from investors such as JetBlue Ventures, Veritas Investments and Sand Hill Angels. It is being said that along with full time, part time workers and contractors have also been affected by the layoffs. The CEO has announced that the startup will file for state receivership as an alternative to bankruptcy.
4.25 lakh people laid off in 2 years According to a report by news agency IANS, tech companies including startups across the world laid off more than 425,000 employees in the last two years. More than 36,000 workers were dismissed in India during the same period. Nearly 2.6 lakh employees in the global technology and startup sector are expected to be laid off in 2023.
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