This company laid off its entire staff on a “two-minute” call

Proptech startup Frontdesk abruptly severed ties with its entire 200-person workforce in a shockingly brief, two-minute Google Meet call on Tuesday.

The termination impacted all 200 employees, including full-time, part-time workers, and contractors. According to an employee present at the meeting, the abrupt decision was attributed to Frontdesk's unsuccessful efforts in securing additional capital, as reported by sources familiar with the situation to TechCrunch.

Frontdesk was founded in 2017 and managed over 1,000 furnished apartments across the United States. It had raised around $26 million from investors, including JetBlue Ventures, Veritas Investments, and Sand Hill Angels. The company attempted to raise more capital, but unfortunately, was unsuccessful in its efforts.

It has been reported that Frontdesk, which leases and furnished apartments for short-term rentals in over 30 markets, recently made an attempt to secure investors by proposing a new plan for full building management, but that did not go well with investors. Despite this setback, the company continued to post job openings on LinkedIn, including a chief of staff role, just two months prior, which suggests that Frontdesk remains optimistic about future fundraising.

According to sources, the startup has faced challenges due to high upfront costs, capital expenditures, and fluctuations in demand and rental rates.

The CEO of Frontdesk, Jesse DePinto, informed the employees during the call that the company would be filing for a state receivership, which is an alternative to bankruptcy.