In recent news, Vacasa, a property management company, has announced a significant restructuring that includes laying off 800 employees, which accounts for 13% of its workforce. This marks Vacasa’s fourth round of layoffs since CEO Rob Greyber took over in September 2022.
The restructuring plan involves cutting 40% of its corporate and central operations staff, as well as 6% of its field employees. The company aims to reorganize its operations to empower local teams to manage their markets more effectively and be accountable for their performance.
According to a financial filing released after the market closed, Vacasa stated that the reorganization would incur costs of $8 million to $9 million, covering severance and benefits payments. Additionally, the company drew down $81 million on a revolving credit facility as part of its financial strategy.
During the first quarter of the year, Vacasa reported a net loss of $141 million, including an $84 million impairment charge. Revenue also declined by 18% year over year, totaling $209 million. The company highlighted challenges such as increased homeowner turnover and a decline in nights sold per home leading up to the summer travel season.
Despite the restructuring efforts, Vacasa mentioned that it does not anticipate achieving adjusted EBITDA profitability in 2024. The company informed its employees about the restructuring earlier, emphasizing the need for operational changes to adapt to the evolving market conditions.
