Short-term accommodation provider Sonder Holdings The company announced Thursday that it has fired 21% of its corporate employees and 7% of its frontline staff as part of a restructuring to increase cash flow.
Executives said Sonder’s future growth will be driven primarily by opening units that already have contracts in countries that already operate.
At a conference call on Thursday, company executives said they were optimistic and confident about travel trends, including business trips, and expected significant growth in demand after the summer. “What we announce today has nothing to do with our enthusiasm for the travel market in the coming quarters,” said Sanjay Bunker, President and CFO of Sonder.
Francis Davidson, co-founder and CEO of Sonder, has positioned the restructuring decision as a reaction to financial markets. “The market dynamics have clearly shifted from a growth-oriented market to one that prioritizes cash flow aggressiveness,” he said.
Subscribe to the newsletter below
Affected employees were notified of layoffs this week, saying that the company “provides retirement, continued benefits, and other support to help retired employees move to new roles.” Stated.
According to Davidson, the “mainly” dismissed frontline staff included personnel who worked at Sonder’s contact center and were responsible for opening the unit. “It’s important for us to be able to provide a very high level of service,” he said.
According to Sonder, who filed with the US Securities and Exchange Commission, Sonder’s Chief Technology Officer, Satyen Pandya, resigned from his role on June 8.
Sonder said he had a contract to open 7,700 live units and an additional 11,600 live units at the end of March. The company has shown that it will only expand further in areas that do not require significant investment to do this, so it did not plan to enter countries where it is not currently in business.
Davidson and Bunker said the company’s business and travel demand remains strong. Sonder estimates second-quarter revenue per available room to be approximately $ 160. This is an increase from $ 117 in the first quarter to $ 100 in the second quarter of 2021.
The company also predicts that second-quarter sales will increase by approximately 140% year-on-year and full-year sales will increase by approximately 100% to 110% from 2021. Sonder expects to achieve positive cash flow in 2023, but did not specify any more.
Zonder went earlier this year Published due to merger with special acquisition company..
https://www.phocuswire.com/sonder-restructuring-includes-layoffs-growth-limits Zonder restructuring including layoffs and growth restrictions