US: Los Angeles-based premier next-generation hospitality platform AvantStay has confirmed a round of redundancies as part of a “gradual reorganisation” of the company.
The actual number of those affected remains somewhat unclear, with 43 “job reductions” revealed to have taken place over the last 30 days. Although it is believed that 19 employees have been laid off in the specified time, new hirings have still continued to be made.
Early last month, AvantStay named former global head of operations at ride-sharing platform Lyft, David Katcher, as its new COO. Since then, the company underwent a reorganisation of its 600-strong team to “eliminate” redundancies and bring in new hires in key positions, according to founder and CEO, Sean Breuner, when speaking to Skift.
At the time of writing, AvantStay was listing 89 open positions for hire, including 42 for urgent placement.
Despite claims by some laid-off employees on social media that a looming recession and investor losses were given as reasons for the cuts, the property management company insists that it is on course for consecutive record booking months,
The restructuring follows a busy six months for AvantStay, in which it has raised $160 million in Series B funding and closed a $500 million PropCo funding round led by real estate advisory and asset management firm, Saluda Grade.
Back in February when the PropCo round was announced, AvantStay – which has been operating more than 1000 properties in 100+ cities in the United States and Cabo San Lucas [Mexico] – said it would utilise the funding to expand into new markets and strengthen its short-term rental property portfolio.
Founded in 2017, AvantStay has set out to be a standard-bearer for the short-term rental industry by delivering a highly curated experience that is customised to guests’ exact needs. The company recently introduced click-to-touch concierge and value-added services, group booking capabilities, and an integrated IoT suite powered by its proprietary operating platform, Voyage.
AvantStay joins the likes of Sonder and WanderJaunt – among others – in announcing extensive job cuts in recent weeks. Sonder laid off 21 per cent of its corporate team and seven per cent of its frontline staff, while the latter ceased operations altogether in its eight markets, affecting around 85 employees, as the recovery of the hospitality and real estate sectors wavers.
ShortTermRentalz has approached AvantStay for further comment.