binarypublishThe short-term rental startup Frontdesk has laid off its entire workforce after failing to secure additional funding. The company, which managed over 1,000 furnished apartments throughout the US, dismissed all 200 full-time employees, as well as contractors and part-time staff, during a two-minute Google Meet call. CEO Jesse DePinto reportedly told the employees that the company would be applying for state receivership. Frontdesk had recently acquired its smaller rival, Zencity. The company has not issued a statement regarding the layoffs and did not respond to a request for comment.
Frontdesk was founded in 2017 and has raised approximately $26 million from investors. Its business model involved leasing rental apartments at market rate, furnishing them, and subleasing them as short-term rentals across the US. However, the company struggled due to the high upfront costs of rental apartments, high interest rates, and varying demand. Other short-term rental companies, including Stay Alfred, Domio, Lyric, Zeus Living, The Guild, and WanderJaunt, have also shut down in recent years.
