* Airbnb laid off 25% of staff, and drew praise for the generosity of its severance packages and clear communication.
* But it didn't offer the same help to the hundreds of contractors it let go last month.
* While employees were given 14 weeks' pay, contractors were promised just 2.
* The disparity highlights the two-tier workforce model that much of Silicon Valley uses, and that some workers complain makes them feel like second-class citizens.
Airbnb has drawn praise for the careful way it handled its recent round of layoffs, and the industry-leading severance packages offered to employees it had to let go — but the packages it gave to contract workers weren't so generous.
On Tuesday, the buzzy San Francisco-headquartered travel startup laid off 1,900 people — around 25% of staff — after its business was battered by coronavirus and lockdowns across the globe. It came shortly after the company ended the contracts of hundreds of contractors it used early.
The way that Airbnb handled Tuesday's employee layoffs has been lauded in Silicon Valley — both for the generosity of the severance packages, and for CEO Brian Chesky's clear communication in why the company was taking these steps. "This is how you do layoffs," wrote Zillow founder Spencer Rascoff on Twitter. "Empathetic, transparent, generous, authentic, apologetic, thoughtful, mission-driven, refocusing."
But while employees were offered 14 weeks of severance pay, a year of health insurance, and a change to company policy on equity, the contingent workers received far less — a commitment that they would receive at least two weeks of pay after receiving notice.
The disparity highlights the two-tier employment structure that is pervasive through much of Silicon Valley. Numerous tech companies bolster their workforce with the use of contractors and contingent workers, allowing themselves to swell their ranks as required but without the costs and logistics of bringing on in-house employees. At some companies — notably Google — contractors have complained of being treated as second-class citizens, denied access to the same resources and perks as some full-time employees — even as they perform the same roles as employees and grow to outnumber actual staff.
Now, as the pandemic prompts widespread layoffs across the tech industry and the broader economy, that two-tier treatment is extended to how laid-off workers are treated.
"My reaction is that it's unfortunate, but par for the course," one impacted Airbnb contractor told Business Insider. (They spoke on condition of anonymity as they were not authorized to talk publicly about their former workplace.) "Contractors were often treated as a sub-class of workers, even down to things like different-colored badges and old computers. In a lot of ways, Airbnb treated people really well, and did the best they could, but this pandemic was handled very poorly. in my opinion."
"Again, I think [the] public praise Airbnb is getting for huge severance packages doesn't take into account that many were dismissed with very little support," the contractor added.
An Airbnb spokesperson said that it was up to the companies that directly employed the contractors to provide benefits, and that the company hopes these staffing agencies will be able to find the workers other work. Airbnb also created an "Airfam" relief fund that offers up to $3,000 for contractors' additional expenses, they added.
Protocol first reported in April that Airbnb ended contract workers' contracts early, and that contractors were told they would receive two weeks' pay after getting their notice. Two sources told Business Insider they believed around 500 workers were affected by this.
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