Airbnb has actively cut costs within its operations amid the coronavirus pandemic and is looking to possibly reduce spend on Amazon Web Services according to CEO Brian Chesky.
The online marketplace has already experienced layoffs, a lull in hiring and interrupted marketing due to the global crisis caused by COVID-19. As the company prepares for a second wind of the virus, Amazon’s cloud-computing service may be next to go, Chesky said in a CNBC interview on Monday.
“There are still opportunities on Amazon Web Services (AWS) and customer service to get more efficient in how we use data, how we handle contacts,” Chesky said. “So we’ll continue to make the business more efficient, but the business is definitely pretty learn at this moment.”
Prior to the pandemic the company planned to go public, a matter that has now been put on hold until the market shows signs of growth according to Chesky. Though it is unclear how much AWS costs Airbnb, it would likely be revealed when the company goes public.
“We’re not ruling out going public this year, but we’re not committing,” Chesky said. “We want the world to be ready for Airbnb and that means that travel needs to see a little more to stay in recovery.”
As the company laid off 25% of its workers in May, it announced that revenue could be less than half of what it made in 2019. However the economy has started to slowly re-open and a clear boost in domestic travel has been visible, igniting the possibility of a 2020 IPO.