Frontdesk, a startup that manages more than 1,000 furnished apartments in the US, laid off its entire 200-person workforce after attempts to raise more capital failed, TechCrunch reported late Tuesday.
The layoffs, which included full-time staff, part-time workers and contractors, happened on Tuesday afternoon during "a two-minute Google Meet call," according to one employee who was among those attending the virtual meeting, the media outlet noted.
The cost-cutting moves come just seven months after Frontdesk acquired smaller rival Zencity.
Company CEO Jesse DePinto also told employees on the call that Frontdesk would be filing for a state receivership, an alternative to bankruptcy, according to TechCrunch.
Frontdesk, which was founded in 2017, had raised about $26 million from investors such as JetBlue Ventures, Veritas Investments and Sand Hill Angels.
The company’s business model involves leasing apartments at market rental rates and furnishing them for short-term rentals in more than 30 markets.