HomeBlogBusiness plansCompany Terminates Entire Workforce in a Swift ‘Two-Minute’ Call

Company Terminates Entire Workforce in a Swift ‘Two-Minute’ Call

Company Terminates Entire Workforce in a Swift ‘Two-Minute’ Call

Proptech startup Frontdesk abruptly cut ties with its entire 200-person workforce in a surprisingly short two-minute Google Meet call on Tuesday. The termination affected all 200 employees, including full-time, part-time, and contract workers. A source at the meeting mentioned that the sudden decision was linked to Frontdesk’s unsuccessful attempts to secure additional capital, according to insiders who spoke to TechCrunch. Established in 2017, Frontdesk managed over 1,000 furnished apartments across the United States.

Having secured approximately $26 million from backers such as JetBlue Ventures, Veritas Investments, and Sand Hill Angels, the company sought additional capital but, regrettably, was unsuccessful in its fundraising endeavors.

Reports indicate that Frontdesk, a provider of short-term rental apartments in 30+ markets, tried attracting investors with a new full building management plan, but it faced resistance. Despite setbacks, the company, evident from recent job postings like a chief of staff role on LinkedIn, seems optimistic about future fundraising. Sources suggest Frontdesk encountered difficulties due to substantial upfront costs, capital expenditures, and fluctuations in demand and rental rates.

During the call, Frontdesk CEO Jesse DePinto informed employees that the company would initiate a state receivership, opting for this alternative over bankruptcy.

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