Entire Staff Laid Off In Two Minutes, US Startup Makes Headlines
It took only two minutes for Frontdesk, a startup that managed more than 1000 furnished apartments across the US, to furlough its 100% workforce. Co-founder and CEO Jesse DePinto of the company requested employees to attend a Google meet, which lasted two minutes, to convey that all of them were laid off due to a poor financial situation.
The company failed to raise more capital, according to TechCrunch, which broke the story. There were 200 employees in the company, and all of them were laid off in two minutes. Depinto later acknowledged the development, saying the company would now go for a state receivership, an alternative to bankruptcy, the publication reported, citing sources.
Additionally, as per the report, the firm”s website says, “Currently, Frontdesk is unavailable. If you have a reservation, please seek alternative accommodations and expect to be contacted within the next two weeks.””
The Milwaukee, Wisconsin-based startup acquired Zencity, a Chicago-based smaller rival firm, seven months before the furlough decision was implemented. The company, which raised about $26 million from investors such as JetBlue Ventures, Veritas Investments and Sand Hill Angels, was founded in 2017.
