Vacasa reduces total workforce by 17 per cent
US: Portland-based vacation rental management platform Vacasa has announced its second major round of redundancies in the space of four months, cutting a further 1300 jobs to reduce its total workforce by 17 per cent.
In October, the company eliminated 280 jobs – then around three per cent of its total workforce in the United States – and before that in July, Vacasa announced that it was cutting 25 positions in its sales department as part of an ongoing effort to “optimise our sales function”, rather than as a “cost-cutting exercise”.
The redundancies came amid a number of significant changes at boardroom level, including the appointment of former Egencia president Rob Greyber as Vacasa’s new CEO. Former chief strategy officer John Banczak also became chief operating officer [COO] and COO Craig Smith was promoted to the role of chief commercial officer [CCO], while chief revenue officer Michael Dodson and chief product officer Michael Xenakis departed in November.
Furthermore, Rachel Gonzalez, a former general counsel at Starbucks Corporation, was brought in to serve as an observer on Vacasa’s board of directors and provide valuable insights to investors.
In an email sent to Vacasa staff members on Tuesday, Greyber said that it was necessary to “reduce our costs and continue to focus on becoming a profitable company”, having seen its share price plummet since going public via a merger with special purpose acquisition company [SPAC] TPG Pace Solutions in December 2021.
The new CEO added that Vacasa’s priorities for the year ahead would include increasing its supply and boosting its market position, as well as improving its software and operating platform, in a bid to return to profitability as swiftly as possible.
All employees affected, particularly those in sales and commercial roles, will be provided with severance pay, continued healthcare benefits and support with upcoming job placements.
The round of layoffs is expected to conclude by the start of the second quarter of 2023, according to Vacasa’s most recent filing with the US Securities and Exchange Commission.
In the same week, luxury travel subscription brand Inspirato confirmed that it was laying off 12 per cent of its current staff with immediate effect to streamline its operations, while property management companies including Sonder and AvantStay announced similarly large-scale layoff rounds in 2022.
Meanwhile, other tech giants such as Amazon, Microsoft and Alphabet / Google have carried out some of the largest layoff rounds in their history in recent weeks to save costs, due to slowdowns in growth and the uncertain economic picture.