Vacation Rental Giant Vacasa Slashes Workforce by 5%, COO Departs
Smartphone with website of American vacation rental company Vacasa LLC on screen in front of business logo. Focus on top-left of phone display - Timon Schneider / Alamy Stock Photo
Vacasa Trims Workforce, COO Departs as Company Eyes Profitability
Vacation rental giant Vacasa announced layoffs impacting 5% of its workforce, or roughly 320 employees. The cuts spanned both local operations and central teams, reflecting a strategic shift towards streamlining operations and achieving profitability. This news comes alongside the departure of Chief Operating Officer John Banczak.
Vacasa cited the need to “align the Company’s expected cost base with its 2024 priorities” as the driving force behind the layoffs. The company aims to become adjusted EBITDA profitable this year, even amidst uncertain economic conditions.
The move follows a net loss of $76.5 million in the fourth quarter, a significant improvement from the nearly $302 million loss reported a year prior. Banczak, a seasoned industry leader who joined as COO in October 2022, will remain on board until March 31st before transitioning to an advisory role until September. Vacasa has already begun the search for his replacement.
The company emphasized that these staff reductions are part of a broader effort to reshape its structure and reduce management overhead. The downsizing will incur costs between $4 million and $5 million in the first half of 2024. Notably, Vacasa assured that Banczak’s departure was unrelated to any disagreements with the company.
