Airy Rooms Layoffs: What Happened & Why?

On May 7, 2020, Airy Rooms laid off 70 employees, representing 1% of its workforce. This move reflects the company's response to ongoing challenges.

Headquartered in Jakarta, Airy Rooms operates in the travel industry. The layoffs come amid a broader industry downturn, significantly impacting travel-related businesses worldwide.

Why did Airy Rooms have Layoffs?

Airy Rooms decided to lay off employees due to the severe impact of the COVID-19 pandemic on the hospitality industry, which led to a significant decline in operations. The company ultimately decided to cease operations by the end of May 2020.

• Severe Impact of COVID-19: The pandemic drastically reduced travel and hotel bookings, leading to a sharp decline in revenue.
• Operational Decline: The company experienced a significant reduction in its operational capabilities, making it unsustainable to continue.
• Permanent Closure: Airy Rooms decided to shut down permanently, which necessitated the layoffs as part of winding down operations.

Company Statement

"We have done our best to overcome the impact of this disaster. However, given the significant technical decline and reduction in human resources, we have decided to stop our operations permanently," read the email as reported by kompas.com.

This statement underscores the severe challenges Airy Rooms faced due to the COVID-19 pandemic. Despite their efforts, the company could not sustain operations amid the drastic decline in technical capabilities and workforce reductions. The decision to cease operations was a last resort after exhausting all other options.

Impact on Workforce and Industry

The layoffs at Airy Rooms significantly impacted its workforce, leading to a reduction in operational efficiency. Key departments such as customer service and management were notably affected, further complicating the company's ability to maintain its services.

In the broader travel industry, several companies have also announced layoffs due to the pandemic. For instance, major players like Airbnb and TripAdvisor have similarly reduced their workforce to cope with the downturn in travel demand.

Looking Ahead

The layoffs signify a pivotal moment for Airy Rooms, marking the end of its operations and a shift in focus for the company's future endeavors.

• Exploring New Ventures: The company may look into new business opportunities outside the travel industry.
• Asset Liquidation: Airy Rooms plans to sell off its remaining assets to settle outstanding debts and obligations.
• Support for Laid-off Employees: Initiatives are being put in place to assist former employees in finding new job opportunities.

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