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frontThe startup, which manages more than 1,000 furnished apartments across the U.S., laid off 100% of its employees earlier this week, and co-founder and CEO Jesse DePinto said in a two-minute The decision was communicated to employees via a Google Meet call. .
TechCrunch StoryThe company has 200 employees and the layoffs were announced on Tuesday, according to the company.
A former employee who attended the virtual meeting told the website that DePinto told employees that the layoffs were due to the front desk’s failure to raise additional capital. The company’s CEO said the job cuts include not only full-time employees, but also part-time workers and contractors.
DePinto also said in the phone call that the company intends to enter into state receivership as an alternative to bankruptcy, the newspaper reported, citing sources.
Additionally, the report states that when you call the contact number listed on the company’s website, you will receive a message that says, “The front desk is currently unavailable. If you have a reservation, please seek alternative accommodation. I believe you will be contacted within the next day.” A recording was heard. several weeks.
Meanwhile, the layoffs come just seven months after the Milwaukee, Wisconsin-based startup acquired smaller Chicago-based rival Zencity.
Founded in 2017, Frontdesk had raised about $26 million from investors including JetBlue Ventures, Veritas Investments, and Sand Hill Angels.
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