Becoming the first tech startup to sack employees, online rental platform Frontdesk has laid off its entire 200-person workforce in 2024. The company fired the employees in a two-minute Google Meet call.
According to a Tech Crunch report, the sacked employees were full-time and part-time workers and contractors.
Frontdesk CEO Jesse DePinto told employees that the company will be “filing for a state receivership, an alternative to bankruptcy”.
“The startup’s business model, which is leasing apartments at market rental rates and furnishing them for short-term rentals in more than 30 markets, has struggled largely due to the upfront costs involved, associated capital expenditures and variables in demand and rates,” according to sources cited by TechCrunch.
Frontdesk was founded in 2017 and managed over 1,000 furnished apartments in the US.
The company faced financial challenges with rental payments, causing communication issues and strained relationships with landlords.
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