San Francisco-based online review platform Yelp announced early Thursday morning that it will be laying off or furloughing at least 2,000 employees.
The news was shared on the company’s blog and via an internal email to employees from company co-founder and CEO Jeremy Stoppelman.
“Today we will let 1,000 of our colleagues go and furlough approximately 1,100 more, while reducing hours for others,” said Stoppelman in the email. “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 this afternoon.”
Stoppelman explained in the email that the shelter-in-place orders have led to a critical slowdown in the businesses essential to Yelp’s review platform.
“The impact we’ve seen on consumer behavior is staggering: interest in restaurants, our most popular category, has dropped 64 percent since March 10, and the nightlife category is down 81 percent. Gyms are down 73 percent, and salons and other beauty businesses are down 83 percent,” he wrote.
The job cuts were a “last resort”, according to the company-wide email.
“We have reduced server costs, deprioritized dozens of projects, and redone our budget based on ensuring company survival (instead of growth).
We have implemented cost savings at the top, including 20-30 percent pay cuts for all execs. Beyond not taking a salary, I also will not vest any of my 2020 stock awards for the remainder of the year,” the email said.
Yelp was founded in July 2004. It reached a net revenue of $1 billion in 2019 and at one point had nearly 6,000 employees around the world.
20 comments
but, But, BUT…now who’s gonna shake-down businesses to pay for the highlighting of good reviews & squash bad ones?
So true, right? I’ve had legitimate reviews removed by Yelp without an explanation…buy ad space and that all “reappears”.
I hope Yelp didn’t take any of the stimulus money then because it prohibits companies from laying off or firing employees if you take the money.
Kennedy Center for the Arts in Washington, DC received $25 million in taxpayer money from the stimulus, then laid off 60% of its workforce. They just kept the money & now don’t have salaries to pay.
Fastest way to add money to the bottom line -cut payroll. Not taking stock options wow you better not and none of your executives either – OR don’t take any government help.
This isn’t going to get a good review…………….
Please, Yelp- It would be easy to blame the Trump recession but let’s face it; this was long time in coming and should surprise no one.
4,000 employees to operate a simple application company over the internet?
This is just the beginning- there will be so many companies downsizing in the next six months during this Trump recession particularly in the Silicon Valley and hospitality industries around the nation.
“Trump recession?” LOL! If Clinton had won (God help us), would you call this the “Clinton recession?” If she had won we’d be even deeper in China’s pocket. If you remember, the Clintons initiated Chinese Communist graft and payoffs to the DNC for the transfer of missile tech to China.
@norcon – There is no recession, and most certainly no Trump recession. You must get all your info from CNN or MSNBC. How sad for you.
Anonymous. Reality check it will be the trump Depression. Perhaps Clinton would have listened to the scientists and acted sooner rather than saying it would disappear by April and delaying preventive measures. This is all trump. Unfit and dangerous.
Oh Anonymous and Cyn LOL. How sad are you two? You’re sorry comments have nothing to do with the Trump recession. Keep drinking the Trump Kool-Aid, and perhaps, acquire a 9 grade education in standard business and economics. Cheers!
Ozzie & norcon,
Keep snortin’ that DNC meth and blame the President for all of your physiological and physical problems. Take some responsibility for your own lives and contribute something positive for once.
Lay blame where it is due. Right on China for the Wu Virus.
Why does Yelp need 4,000 employees when we are the ones posting the comments?
Sounds like a fiscally irresponsible business model.
Anonymous, Although not a Trump fan, he is not to blame for the virus, which led to massive lay off. Fair is fair.
Looks like “Anonymous” got booted.
Good yelp is bad
…“ The job cuts were a ‘last resort‘ “… this just shows how much companies really have in the bank. Companies can only last a few weeks if they take in less then 95% of normal income.
Never used Yelp for recommendations.
Yelp is a extortionist operation. Pay me or the bad reviews show up.
Pay me or the good reviews don’t show up.
The corporatist courts rule for Yelp because you can’t hurt a McDonalds but you can put a Mom n Pop out with fake reviews by anonymous cretins.
I have tried Yelp a few times when checking on a store or eatery. It seems like the only people who post are women who don’t like something about their server, or cashier. Funny, I don’t remember encountering a server with a bad attitude. I always greet them cordially with a smile.
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