Yelp will lay off 1,000 workers and furlough more than 1,000 other employees, the company announced Thursday.
Yelp co-founder and CEO Jeremy Stoppelman said in a letter to employees that the stay-at-home orders and required social distancing “have dealt a devastating blow to the local businesses that are core to our mission.” He said the businesses “understandably” have not been able to afford Yelp’s services.
“Today we will let 1,000 of our colleagues go and furlough approximately 1,100 more, while reducing hours for others,” Stoppelman said in a statement.
“We came to this decision as a last resort only after cutting non-employee expenses where possible,” he continued. “We have reduced server costs, deprioritized dozens of projects, and redone our budget based on ensuring company survival (instead of growth).”
Stoppelman said all executives have experienced a 20 to 30 percent pay cut, and he has vowed not to take salary or vest any of his 2020 stock awards this year.
Employees who will be laid off will receive severance pay and reimbursement for up to three months of health insurance coverage. Furloughed workers will be on unpaid leave, will retain “the bulk of their benefits” and will receive two weeks of additional pay.
Those whose hours are reduced will also keep their benefits
In the release, the CEO said interest in restaurants has dropped 64 percent, interest in nightlife fell 81 percent, interest in gyms decreased 73 percent and salons and beauty businesses plummeted by 83 percent since March 10.
“I do not take lightly the additional difficulties each one of those affected and their families will face in the coming months, and I’m truly sorry,” he said in the release.
“To those who are furloughed, we will be laser focused on getting the company to a point where we can all return to work,” he added.