This company laid off its entire staff on a “two minute” call

Frontdesk, a proptech startup operating over 1,000 furnished apartments, laid off its entire workforce of 200 people due to failed attempts at raising additional capital. The CEO, Jesse DePinto, announced the layoffs during a two minute Google Meet call. The company, founded in 2017, managed apartments across the US and had raised $26 million from investors.

Despite recent challenges, including difficulties in securing investors and high upfront costs, Frontdesk had previously posted job openings and expressed optimism about future fundraising. DePinto also mentioned that the company would be filing for a state receivership as an alternative to bankruptcy.

Frontdesk , a proptech startup that operated over 1,000 furnished apartments across the United States, laid off its entire workforce of 200 people over “a two minute Google Meet call” on Tuesday afternoon. The layoffs affected full time, part time workers and contractors. The news was given to the staff during a Google Meet call that lasted only two minutes, told one of the employees attending the meeting.

Sources familiar with the matter told TechCrunch that the mass layoff was due to the failure of the company's attempts to raise additional capital. Frontdesk was founded in 2017 and managed over 1,000 furnished apartments across the United States. It had raised around $26 million from investors, including JetBlue Ventures , Veritas Investments , and Sand Hill Angels.

The company attempted to raise more capital, but unfortunately, was unsuccessful in its efforts. It has been reported that Frontdesk, which leases and furnished apartments for short term rentals in over 30 markets, recently made an attempt to secure investors by proposing a new plan for full building management, but that did not go well with investors.

Despite this setback, the company continued to post job openings on LinkedIn, including a chief of staff role, just two months prior, which suggests that Frontdesk remains optimistic about future fundraising. According to sources, the startup has faced challenges due to high upfront costs, capital expenditures, and fluctuations in demand and rental rates.

The CEO of Frontdesk, Jesse DePinto, informed the employees during the call that the company would be filing for a state receivership, which is an alternative to bankruptcy. Explore Your Financial Landscape with Personalized Credit Insights. FOLLOW US ON SOCIAL MEDIA Visual Stories Previous Here’s how many users top telcos have in India Gadgets 5G smartphones with 10GB or more RAM under Rs 25,000 Gadgets 5G smartphones launching in 2024 Gadgets Top 5 AR/VR headset companies worldwide in Q3 23 Gadgets 5G smartphones with in display fingerprint sensor Gadgets 10 ‘most popular’ YouTube Shorts in 2023 Gadgets 5G phones with IR blaster under Rs 30,000 Gadgets ISRO’s upcoming missions in 2024 Gadgets Reliance JioTV Premium subscription plans launched: All the details Gadgets 10 5G smartphones under Rs 35,000 Gadgets Next 1 2 3 Elections Chhattisgarh CM News MP CM News Rajasthan Election Results MP Election Result 2023 Chhattisgarh Election Result Mizoram Election Result TOP TRENDS Adani Hindenburg Case India Covid Cases Adani Case PM Modi Kerala Visit Air India News Gate Admit Card.