Loftium, a Seattle-based startup in the short-term rental and property management industry, laid off more than half of its employees in 2020 as the COVID-19 pandemic devastated travel and Airbnb demand. The company, which had secured $15 million in venture capital and was rapidly expanding, operated in 11 cities with around 700 rental units. Founded in 2017, Loftium's business model relied on renting homes from landlords, subleasing part of the space to long-term tenants at a discount, and managing Airbnb listings in the remaining areas. With travel halted, the company faced severe financial strain, leading to widespread layoffs, withheld lease payments to landlords, and a reduction in its Airbnb listings. This crisis forced Loftium to attempt renegotiating lease terms with tenants to stay afloat.
