Frontdesk, a proptech startup that operated over 1,000 furnished flats throughout the USA, laid off its complete workforce of 200 individuals over “a two-minute Google Meet name” on Tuesday afternoon.
The layoffs affected full-time, part-time employees and contractors. The information was given to the employees throughout a Google Meet name that lasted solely two minutes, advised one of many staff attending the assembly.
Sources conversant in the matter advised TechCrunch that the mass layoff was as a result of failure of the corporate’s makes an attempt to lift further capital.
Frontdesk was based in 2017 and managed over 1,000 furnished flats throughout the USA. It had raised round $26 million from buyers, together with JetBlue Ventures, Veritas Investments, and Sand Hill Angels. The corporate tried to lift extra capital, however sadly, was unsuccessful in its efforts.
It has been reported that Frontdesk, which leases and furnished flats for short-term leases in over 30 markets, just lately made an try to safe buyers by proposing a brand new plan for full constructing administration, however that didn’t go nicely with buyers. Regardless of this setback, the corporate continued to put up job openings on LinkedIn, together with a chief of employees position, simply two months prior, which means that Frontdesk stays optimistic about future fundraising.
Based on sources, the startup has confronted challenges because of excessive upfront prices, capital expenditures, and fluctuations in demand and rental charges.
The CEO of Frontdesk, Jesse DePinto, knowledgeable the workers in the course of the name that the corporate could be submitting for a state receivership, which is an alternative choice to chapter.
The layoffs affected full-time, part-time employees and contractors. The information was given to the employees throughout a Google Meet name that lasted solely two minutes, advised one of many staff attending the assembly.
Sources conversant in the matter advised TechCrunch that the mass layoff was as a result of failure of the corporate’s makes an attempt to lift further capital.
Frontdesk was based in 2017 and managed over 1,000 furnished flats throughout the USA. It had raised round $26 million from buyers, together with JetBlue Ventures, Veritas Investments, and Sand Hill Angels. The corporate tried to lift extra capital, however sadly, was unsuccessful in its efforts.
It has been reported that Frontdesk, which leases and furnished flats for short-term leases in over 30 markets, just lately made an try to safe buyers by proposing a brand new plan for full constructing administration, however that didn’t go nicely with buyers. Regardless of this setback, the corporate continued to put up job openings on LinkedIn, together with a chief of employees position, simply two months prior, which means that Frontdesk stays optimistic about future fundraising.
Based on sources, the startup has confronted challenges because of excessive upfront prices, capital expenditures, and fluctuations in demand and rental charges.
The CEO of Frontdesk, Jesse DePinto, knowledgeable the workers in the course of the name that the corporate could be submitting for a state receivership, which is an alternative choice to chapter.
