In the last few years, layoffs have become a very common phenomenon, particularly in the tech industry and it has been increasing quite steadily since the COVID-19 pandemic. Thousands of employees have been laid off with either prior notices or sometimes sudden emails. While the most common reasons are companies looking forward to cost-cutting tactics, there are also times when the unpredictable and volatile job market and decline in demand for product services lead to seasonal closure or sudden termination. In one such very shocking instance, a company recently laid off all its 200 employees in just a matter of seconds over an online video call.
According to a Techcrunch report, Frontdesk, a prop-tech company recently laid off its entire staff of 200 employees over a two-minute call on Google Meet. According to an employee who was present in the call, the terminations took place due to the company’s unsuccessful attempts to secure extra capital. It was during the call when the company CEO Jesse DePinto informed the employees that the company would be filing for a state receivership, an alternative to Bankruptcy.
Talking about the company, Frontdesk is known for renting out apartments at regular prices and furnishing them for short stays in over 30 markets. However, things got a little tough due to high costs and changes in how people want to pay. While the company tried to get investors on board with a new plan, it didn’t work out, and thus a drastic decision had to be taken. Founded in 2017, Frontdesk has managed more than 1,000 apartments across the United States and has received around $26 million from investors like Sand Hills Angels, JetBlue Ventures, and Veritas Investments.
Major layoffs in the past
This is not the first time such a thing has happened. Earlier in 2022, a British shipping company terminated its 800 employees over a video call as a part of its plan to replace them with cheaper employees.
In another such instance, mortgage lender startup Better.com earlier informed its 900 employees about their termination during a video call. While the company issued the termination without a forewarning, the CEO further informed that employees can expect an email from the human resource department, detailing benefits and severance.
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