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Business News/ Companies / News/  Gone in 2 minutes: THIS startup laid off entire workforce; Here's what CEO said in Google Meet call

Gone in 2 minutes: THIS startup laid off entire workforce; Here's what CEO said in Google Meet call

THIS company fired its 200-workforce, including full-time, and part-time workers and contractors, over a “two-minute” Google Meet call.

The layoffs included full-time, and part-time workers and contractors. (Mint)Premium
The layoffs included full-time, and part-time workers and contractors. (Mint)

Frontdesk, a proptech startup that managed over 1,000 furnished apartments across the US, laid off its entire 200-person workforce on Tuesday. Reason? Their attempts to raise more capital had failed, sources were quoted by TechCrunch as saying.

ALSO READ: Layoffs in 2023: Paytm's parent company, One97 Communication, hands over pink slip to over 1000 employees

Frontdesk CEO Jesse DePinto had reportedly fired all the employees on Tuesday afternoon during “a two-minute Google Meet call". According to one employee who had attended the virtual meeting shared details of the meeting with TechCrunch.

ALSO READ: Tech layoffs 2024: Xerox announces a reduction inworkforce by 15%. Here is why

According to the report, Frontdesk CEO Jesse DePinto told employees that the company would be filing for a state receivership, an alternative to bankruptcy, sources said.

The company has not yet responded to a request for comment. Upon calling the number on Frontdesk’s website, a recording says: "Currently, Frontdesk is unavailable. If you have a reservation, please seek alternative accommodations and expect to be contacted within the next two weeks," TechCrunch reported.

ALSO READ: Google CEO Sundar Pichai opens up on company's biggest layoff in 25 years: ‘We could have done differently’

The layoffs, which included full-time, and part-time workers and contractors, came seven months after the Milwaukee, Wisconsin-based startup acquired smaller rival Zencity.

Frontdesk was founded in 2017. It had raised about $26 million from investors such as JetBlue Ventures, Veritas Investments and Sand Hill Angels, according to Crunchbase.

ALSO READ: Over 100 Indian startups laid off more than 15,000 staff this year: Report

The report added that Frontdesk went out for a bridge round, attempting to sell investors on a new plan of doing full building management. However, the plan didn’t work out and the company couldn’t keep operating.

"The company was not only not able to make rent on a number of properties but had 'little to no communication with' the reportedly infuriated landlords," sources said.

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Published: 06 Jan 2024, 04:06 PM IST
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