Frontdesk, a startup that managed more than 1000 furnished apartments across the United States, laid off 100% of its staff earlier this week, with co-founder and CEO Jesse DePinto communicating the decision to employees over a Google Meet call that lasted all of two minutes.
TechCrunch, which broke the story, said that the company had a workforce of 200 people, and that the layoffs were announced on Tuesday.
A now-former employee who attended the virtual meeting told the website that DePinto informed the staff that the layoffs were due to FrontDesk’s failure to raise more capital. Besides the full-time people, the job cuts include both part-time workers and contractors, the CEO was quoted as saying.
DePinto also said during the call that the company would now go for a state receivership, an alternative to bankruptcy, the publication reported citing sources.
Additionally, as per the report, when one calls on a contact number given on the firm’s website, a recording says: “Currently, Frontdesk is unavailable. If you have a reservation, please seek alternative accommodations and expect to be contacted within the next two weeks.’
The job cuts, meanwhile, come just seven months following the Milwaukee, Wisconsin-based startup’s acquisition of Zencity, a Chicago-based smaller rival firm.
Frontdesk, founded in 2017, had raised about $26 million from investors such as JetBlue Ventures, Veritas Investments and Sand Hill Angels.
