Another US-based company, after better.com fired 200 employees via video call. Frontdesk is a prop-tech startup that fired 200 employees over a Google Meet call lasting two minutes.
According to a article, Frontdesk recently terminated a large number of employees. This included full-time and part-time employees as well as contractors. The move was made during a short Google Meet call. Many were shocked and unsure about their futures at the company.
Jesse DePinto announced the news on the phone, saying that Frontdesk was planning to file for state receivership as an alternative to bankruptcy. The company has not responded to requests for comment. Its website advises customers to seek alternative accommodations, and that they should expect further communication within two weeks.
Frontdesk was founded in 2017 and had already secured $26 million of funding from investors such as JetBlue Ventures. Veritas Investments. Sand Hill Angels. The startup pitched a new building management strategy to raise more money through a bridge funding round. This approach did not work out and led to operational problems.
Sources told that Frontdesk CEO Jesse DePinto informed employees during the call that they would be filing for state receivership as an alternative to bankruptcy.
Reports said, Frontdesk has raised around $26 million in funding from investors including JetBlue Ventures Veritas investments and Sand Hill Angels.
The US online newspaper reported that sources told them the startup had tried to convince investors about its plan to take on full building management. The startup was unable to continue operations after this failed.
The startup’s business plan, which involves leasing apartments for market rental rates, furnishing them and renting them out on short-term basis in over 30 markets has been a struggle due to upfront costs, capital expenditures, and variations in rates and demand, reports citing a reliable source.
