Yelp lays off 1,000 employees as COVID-19 pandemic takes a toll on restaurants
Yelp is known to rely on restaurants purchasing their products and services. Taking in consideration that most restaurants are either closed or experiencing a significant reduction in customers, and thus, revenue, it all translates to Yelp losing money too.
The company's CEO makes it clear that an effort to support its departing colleagues will be made, such as severance pay, and reimbursement for up to three months of their health insurance coverage.
Stoppelman also adds that Yelp executives will get 20-to-30% cuts in pay too, and he himself won't be taking a salary. The difficult decisions were made after last resort non-employee expenses were already cut where possible, but it wasn't enough to sustain the company.
Businesses all over the world are experiencing the impact of the coronavirus pandemic, with smartphone makers suffering a 10-year low in phone sales this year. Apple closed its retail stores everywhere in the world outside of China, and its upcoming 5G iPhones are rumored to be delayed to December or later.
Many tech companies took measures to help support their customers and affected groups around the world. Apple is letting Apple Card users skip monthly payments without occurring interest, and is donating millions in supporting the fight against COVID-19, while Samsung began offering door-to-door servicing of their Galaxy products in some regions. In addition, Google recently made its Premium Google Meet service free until the end of this year, in an effort to help businesses and schools remain connected.