Yelp Co-founder and Chief Executive Officer Jeremy Stoppelman sent out a company-wide email, announcing thousands of lay offs and furloughs…
Founded about sixteen years ago by former PayPal employees Russel Simmons and Jeremy Stoppelman, Yelp has become a widely-used but much-criticized service that primarily serves restaurants and other retailers.
Yelp Lays Off 1,000 Employees, Furloughs 1,100 Workers as Restaurants Struggle during Coronavirus Pandemic Shutdowns
With the ongoing shutdowns made necessary by the COVID-19 outbreak, restaurants, other retailers, and many other businesses, have been severely financially damaged. Because Yelp relies on these businesses for its revenue, the company has announced it is laying off 1,000 employees, furloughing another 1,100 workers, and cutting executive pay by 20 to 30 percent.
Yelp’s revenue is dependent on member business’ advertising and paying for various other services. Since the coronavirus has resulted in entire industries coming almost to a complete halt, there’s considerably less money flowing into Yelp. Stoppelman wrote in-part in an email dispatched to all its team members:
“As local businesses urgently figure out how to manage this crisis, we must do the same. To help Yelp get through this period of great uncertainty, we have had to make some incredibly hard decisions to reduce our operating costs. Today we will let 1,000 of our colleagues go and furlough approximately 1,100 more, while reducing hours for others. Your department leaders will be in touch this morning to discuss how this affects you individually, and letters with more details and FAQs will follow…”