Airbnb (NASDAQ:ABNB) has laid off about 30% of its recruiting staff, according to a Bloomberg report. The move comes despite the company’s record fourth-quarter results and its plans to hire more employees this year.
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The company connects hosts and guests online and allows them to book travel services and accommodation facilities worldwide.
It is worth highlighting that the cuts affected only 0.4% of its total workforce. Furthermore, at a time when tech companies went on a layoff spree to support their bottom lines, Airbnb benefited from a rebound in travel demand. In fact, the company modestly increased its headcount over the past two years.
Last month, the company reported 24.2% year-over-year growth in fourth-quarter revenues. The upside was due to a 20% jump in bookings for the Nights and Experiences segment during the quarter.
Moving on, at the Q4 earnings call last month, Airbnb’s CFO, David Stephenson, said that headcount growth is expected to be between 2% and 4% in 2023. “We’re going to continue to grow, but we’re going to grow modestly,” he had added.
Is Airbnb a Buy, Sell, or Hold?
Wall Street is currently cautiously optimistic about Airbnb, with a Moderate Buy consensus rating. This is based on 15 Buys, 14 Holds, and three Sells. The average ABNB stock price target of $140.81 suggests a 12% upside potential. Shares of the company have gained 48% so far in 2023.
