EDITOR'S COMMENT
• It is always distressing to read of more layoffs, especially when one thinks about the highly skilled individuals who are unfortunate to be losing their job with limited notice. The travel and hospitality sectors have been impacted hard by the pandemic and market volatility in recent years, to such an extent that each redundancy news story that comes through now loses some of its shock factor.
Denver-based Evolve has become the latest short-term rental property management company to significantly trim its workforce [by 164 employees / 14 per cent of the company], following similar moves by Sonder, Vacasa, Blueground and AvantStay in the last seven months. The news is all the more striking when one considers that Evolve raised $100 million in funding just last February to accelerate its growth plan in North America.
Like other operators, CEO Brian Egan cited "increasingly volatile and dynamic" market conditions and supply growth outpacing demand growth as factors in needing to cut jobs. Despite that, he said that the cuts were not down to profitability reasons, thereby differentiating Evolve from some aforementioned firms who saw their valuation plummet after going public via ill-fated SPAC mergers.
A decision like this can never be taken lightly but Egan deserves credit for his empathy and pledge to communicate "often, honestly and directly”. Evolve is not alone in this situation either - many hospitality and technology firms became overstaffed having re-hired en masse after Covid - and the company's support for outgoing employees plus a relatively healthy balance sheet could help all parties return to prosperity in the future.
• There are plenty of highlights in June for STRz readers to put in their diaries:
Tuesday 6 June [4pm BST] - 'What happens when it all goes wrong? Prevention techniques to avoid catastrophe' webinar with Vinayak Mahtani [bnbme holiday homes], Woody Wade [Wade & Company SA], Jacobie Olin [C2G Advisors] and Karen Hanton [toptable.co.uk]. Sign up for free here
Wednesday 7 June - Skift Short-Term Rental Summit in New York City [for which STRz is an exclusive media partner and will be represented on stage]
Wednesday 28 June [5pm BST]: STRz webinar in partnership with Whimstay
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