Yelp told employees Thursday that it is cutting 1,000 jobs and furloughing another 1,100 workers amid a massive drop in its business.
Why it matters: Yelp is the latest company catering to small businesses that has seen much of its customer base decimated amid the COVID-19 outbreak and related shutdowns.
What they're saying: "This rapid shutdown of local economies has directly affected our business, and the magnitude and duration of the impact are unknown," Yelp said in a statement. "To ensure that Yelp can weather this crisis and be best positioned to serve the community when the recovery begins, we must significantly reduce our operating costs."
Context: Yelp had 5,950 employees as of the end of 2019.
The big picture: Yelp has seen customer interest in restaurants down 64% since March 10, with nightlife, gyms and beauty salons down 70% or more, CEO Jeremy Stoppelman said in an employee email posted to the company's website.
The company is also:
- cutting server costs;
- deprioritizing dozens of projects; and
- cutting executive pay by 20% to 30%.
And Stoppelman is not taking a salary and will not vest any further stock awards this year.
Flashback: Yelp last month launched a $25 million program giving ad credits to small businesses and also partnered with GoFundMe on a donation program, though it was forced to revamp the program after some customers complained.
Go deeper: The coronavirus's domino effect on startup layoffs
