Vacasa, a vacation rental management company based in Portland, Oregon, has recently announced that it will be laying off hundreds of employees. This comes after the company shed nearly 30% of its employee base in the past year and reported an 18% drop in first-quarter revenue following the announcement of the layoffs.
The majority of the layoffs are happening at the corporate level, with 40% of those jobs being eliminated. The company is reorganizing its operations to have field teams manage their markets more effectively, which will result in a significant reduction in its central corporate footprint. Many former employees took to LinkedIn to share the news of their job loss.
Vacasa manages vacation rental properties in 34 states across the country and has recently faced financial challenges. Following the announcement of the layoffs, the company reported a $141 million loss. The cost of the layoffs is estimated to be between $8 million and $9 million.
Despite these challenges, Vacasa is taking significant risks in hopes of improving its business model in the long run. The company’s stock has dropped more than 28% since the announcement of the layoffs and poor financial results. However, Vacasa acknowledges that reorganization and operational changes may not be successful and may impact future performance.
