In 2024, Frontdesk, an online rental platform, notably became the initial tech startup to lay off its entire 200-person workforce through a concise "two-minute Google Meet call."
The company has terminated its entire 200-person workforce via a brief two-minute Google Meet call, setting off discussions about challenges faced by emerging tech firms, especially in the proptech sector.
Frontdesk CEO, Jesse DePinto, conveyed the grim news to employees, stating that the company would be “filing for a state receivership, an alternative to bankruptcy.” The layoffs, which included full-time, part-time workers and contractors, occurred on Jan 2nd during “a two-minute Google Meet call,” according to TechCrunch report.
Also read/watch - Adani-Hindenburg case verdict: Adani Group stocks soar after Supreme Court ruling
Founded in 2017, the startup managed 1,000+ furnished US apartments, but its failure to secure additional capital led to the drastic action.
“Frontdesk was apparently still optimistic about its ability to raise more capital; the startup had posted on LinkedIn openings for several jobs, including a chief of staff role, just two months ago,” as per TechCrunch report report, highlighting the suddenness of the layoffs despite recent recruitment efforts.
This move adds to the growing number of global tech layoffs, with over 425,000 employees affected worldwide in the last two years, including 36,000 in India alone. In 2023, the tech and startup sector witnessed nearly 260,000 job terminations, reflecting the industry's vulnerability to macroeconomic shifts.