Yelp will be laying off or furloughing 35 percent of its staff in response to the coronavirus outbreak and the need to cut expenses, the CEO announced in a company-wide email Thursday.
"It’s been an extremely difficult and painful last month: the world is facing a global health crisis none of us have ever witnessed in our lifetimes," Yelp CEO Jeremy Stoppelman wrote. "It has disrupted daily life for nearly everyone — from businesses that rely on foot traffic or human contact, to workers who have no visibility into when they will earn their next paycheck; and parents, including many of us here at Yelp, who are trying to juggle childcare with job responsibilities."
Adding, "We came to this decision as a last resort only after cutting non-employee expenses where possible. "
Yelp will be laying off 1,000 workers and furloughing an additional 1,100.
The crowd-sourced reviews app had 5,950 employees as of December 31, 2019, according to its SEC filing.
Stoppelman says that he won’t take a salary nor stock gains for the remainder of the year.
The company expects $8 to $10 million in fees due to severance and benefits costs.