This tech company fired its entire workforce in a ‘two-minute Google Meet call’

Frontdesk, a US-based prop tech startup, sent shockwaves through its entire workforce as it abruptly terminated around 200 employees via a terse two-minute Google Meet call. 

The company's CEO, Jesse DePinto, delivered the grim news during the fleeting virtual meeting, leaving employees—comprising full-time, part-time workers, and contractors—stunned and uncertain about their future within the firm, according to a report from TechCrunch.

The announcement also disclosed Frontdesk's intention to seek state receivership as an alternative to bankruptcy. Despite attempts to elicit a response from the company, Frontdesk has remained reticent, advising its customers via its website to seek alternative accommodations and await further communication within a fortnight.

Founded in 2017, Frontdesk initially garnered a substantial $26 million in investments from notable backers such as JetBlue Ventures, Veritas Investments, and Sand Hill Angels. However, the startup faced a series of setbacks, culminating in its recent struggle to sustain operations.

The company's attempt to pivot towards full building management through an additional funding round failed to materialize, exacerbating operational challenges. This turn of events came despite the company's seemingly optimistic outlook, evident in its recruitment drive for a chief of staff position merely two months before the mass layoffs.

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Frontdesk encountered mounting difficulties, including rental payment issues for multiple properties, leading to strained relations with landlords due to insufficient communication.

The company's woes stem from its business model, primarily centred on short-term apartment rentals—a strategy fraught with financial hurdles. Frontdesk grappled with escalating costs and a volatile demand for short-stay accommodations, rendering its business unsustainable.

This episode casts doubts on the viability of similar ventures within the short-term rental sector, highlighting the formidable obstacles faced by companies operating in this space. It underscores the formidable challenges posed by fierce competition and the intricacies of business models within the industry.

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