Hospitality startup Sonder slashes workforce

VC-backed company has raised $345M to date

National /
Mar.March 24, 2020 02:30 PM
Sonder CEO Francis Davidson (Credit: Linkedin, iStock)

Sonder CEO Francis Davidson (Credit: Linkedin, iStock)

With travel at a standstill, venture-backed hospitality company Sonder has cut one-third of its staff.

The San Francisco-based company has laid off or furloughed 400 people, The Information reported. With residents of major U.S. cities sheltering in place, bookings are down 20 percent at the company’s 5,000 apartments across the U.S. The layoffs hit multiple departments, including engineering.

“If we pull these levers simultaneously, we have a chance,” CEO Francis Davidson said. “There isn’t a single line that won’t come under deep scrutiny.”

Having raised $345 million from investors to date, Sonder claims to be valued at more than $1 billion. The company said it is not running out of money, but investors have still committed to investing more to give Sonder a cushion.

As businesses reel from the coronavirus pandemic, the hospitality sector in particular has screeched to a halt, and other VC-backed companies have also announced cuts.

Last month, San Francisco-based Lyric, which has raised $160 million and is backed by Airbnb, laid off 20 percent of its staff. San Francisco-based Waanderjaunt laid off 15 percent to 20 percent of its 240-person staff, and Austin-based The Guild, which has raised $50 million, laid off 38 of 175 staffers. [The Information] — E.B. Solomont


Related Articles

arrow_forward_ios
From left: Mayor Bill de Blasio, 54 West 39th Street, 62 Grand Street, and 208 West 30th Street (Credit: Google Maps)

The Airbnb crackdown continues: City targets three more buildings

The Airbnb crackdown continues: City targets three more buildings
Mayor Bill de Blasio and Stanley “Skip” Karol, an Airbnb host (Credit: Getty Images and Youtube)

Airbnb host narrowly clears hurdle in First Amendment claim against city

Airbnb host narrowly clears hurdle in First Amendment claim against city
A West Village Airbnb listing (Credit: Airbnb)

Airbnb Luxe launched without listings in one of their biggest potential markets — why?

Airbnb Luxe launched without listings in one of their biggest potential markets — why?
Domio's CEO Jay Roberts and Chief Strategy Officer Adrian Lam (Photos via Domio)

Short-term rental operator Domio shuts down

Short-term rental operator Domio shuts down
Airbnb CEO Brian Chesky (Getty; iStock)

Airbnb is offering hosts company shares. But millions may miss out

Airbnb is offering hosts company shares. But millions may miss out
Airbnb CEO Brian Chesky (Getty)

Inside Airbnb’s IPO pitch

Inside Airbnb’s IPO pitch
The Real Deal's E.B. Solomont

Demise of title startup, SoftBank execs join SPAC

Demise of title startup, SoftBank execs join SPAC
This winter, U.S. travelers may be flocking to warmer destinations with eased restrictions (Getty)

U.S. travelers flock to warmer destinations with eased restrictions

U.S. travelers flock to warmer destinations with eased restrictions
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...