Frontdesk prop tech startup fires entire workforce in two-minute Google Meet call

In a swift and stunning move reminiscent of the recent better.com incident, Frontdesk, a US-based prop tech startup, has made headlines for all the wrong reasons. The company announced the termination of approximately 200 employees, constituting its entire workforce, during a concise two-minute Google Meet call.

TechCrunch, a reputable source in the tech industry, reported this abrupt and significant layoff by Frontdesk. The dismissals affected various categories of workers, including full-time employees, part-time staff, and contractors. The manner in which this unfolded during a brief virtual meeting caught many off guard, leaving them uncertain about their professional futures within the company.

Jesse DePinto, the CEO of Frontdesk, delivered the unsettling news during the call. He disclosed the company's intentions to pursue a state receivership, an alternative route to bankruptcy, to manage the challenging financial situation. Despite attempts to gather insights from the company, Frontdesk remains silent. Meanwhile, their website advises customers to seek alternative accommodations, promising further communication within a fortnight.


Frontdesk, established in 2017, had garnered substantial funding amounting to approximately $26 million from renowned investors such as JetBlue Ventures, Veritas Investments, and Sand Hill Angels. The startup had pursued additional funding through a bridge round, presenting a new strategy focused on comprehensive building management. Unfortunately, this approach failed to materialize, resulting in operational hurdles.

The company's financial struggles escalated as they encountered difficulties in meeting property rental payments, leading to strained relationships with landlords due to inadequate communication. The challenges Frontdesk faced ultimately forced them to make the difficult decision of letting go of a considerable number of employees, causing distress and uncertainty among the affected workforce.

Frontdesk's business model, centered on short-term rentals of furnished apartments, proved unsustainable amid escalating costs and fluctuating demand for such accommodations. Their challenges highlight the formidable obstacles faced by companies operating within the short-term rental industry, showcasing the intense competition and intricacies of the business models involved.

This incident raises concerns about the sustainability of similar companies operating in the short-term rental domain, hinting at potential difficulties these businesses might encounter due to industry dynamics and fierce competition. Frontdesk's struggles serve as a testament to the substantial hurdles faced by companies operating within this field.