News: Frontdesk cuts entire 200-person team in two-minute Google Meet call

Strategic HR

Frontdesk cuts entire 200-person team in two-minute Google Meet call

CEO Jesse DePinto allegedly conveyed to the employees the company's plan to opt for state receivership as a substitute for declaring bankruptcy.
Frontdesk cuts entire 200-person team in two-minute Google Meet call

Frontdesk, an online rental platform, dismissed its entire 200-person workforce through a brief two-minute Google Meet call.

The sweeping measure affected all categories of workers: full-time employees, part-time staff, and contractors, hinting at the impending closure of the proptech startup, reported TechCrunch. 

CEO Jesse DePinto reportedly informed employees about the company's intentions to pursue a state receivership as an alternative to bankruptcy. As of the report, Frontdesk hadn't provided an official comment.

Established in 2017, the startup managed over 1,000 furnished apartments across the United States. Despite previously raising $26 million from investors like JetBlue Ventures, Veritas Investments, and Sand Hill Angels, its efforts to secure additional funding fell short.

Just two months ago, Frontdesk appeared optimistic about its prospects, even posting job openings on LinkedIn, including a chief of staff role.

This development mirrors a larger trend in the tech industry. Over the past two years, global tech companies, including startups, have terminated over 425,000 employees, with India accounting for more than 36,000 job losses. 

In 2023, the tech and startup sector worldwide witnessed layoffs affecting nearly 260,000 employees.

Attributed to global economic conditions, layoffs persist across various Big Tech companies and startups, painting a challenging landscape for the workforce.

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Topics: Strategic HR, #Layoffs, #HRTech, #HRCommunity

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