TravelUS

Sonder Layoffs

March 2020

Sonder announced a layoff affecting 400 employees (33% of its workforce) in March 2020. The company operates in the Travel sector.

People Affected

400

Percentage

33%

Announced Date

Mar 24, 2020

About

Sonder, a San Francisco and Denver-based short-term apartment rental company, laid off or furloughed 400 employees, representing 33% of its workforce across all departments. The drastic cuts, driven by a 20% decline in bookings across its 5,000 apartments due to the coronavirus pandemic's impact on travel, highlight the severe challenges facing the hospitality and tech-enabled rental industry. The company, which had raised $360 million and achieved a valuation over $1 billion, was forced into this restructuring as the global health crisis decimated demand.