Vacasa, the vacation rental property manager, has announced that it will eliminate 1,300 positions, which was 17 percent of its workforce, as the company determined it had to make deeper improvements to operations. This comes just three months after the company laid off 280 staffers. The job cuts are geared to root out inefficiencies, reduce Vacasa’s cost structure, and optimize execution and performance. According to Rob Greyber, Vacasa’s CEO, the company needs to reduce its costs and continue to focus on becoming a profitable company. The commercial department seems to have been the most affected by these layoffs, as it is being consolidated into a single unit instead of the previous inside sales and outside sales structure. Operations employees, such as cleaners, caretakers and maintenance workers, are less impacted by the job cuts than the commercial staff. Vacasa has stated that the layoffs impacted both local operations teams, as well as “central teams”. The company’s priorities include adding vacation rentals for Vacasa to manage, expanding the company’s market position, and improving the Vacasa’s software and operating platform.
The reason for Vacasa laying off 1,300 employees can be attributed to the company’s desire to root out inefficiencies and reduce its cost structure to optimize execution and performance. The layoffs were not tied to the state of the economy but rather part of the company’s plan to reduce its costs and focus on becoming profitable. According to Rob Greyber, the CEO of Vacasa, the company realized more recently during the annual planning process “that Vacasa has more work to do.” As part of this, Greyber wrote in an email to employees, the company needs to reduce its costs and continue to focus on becoming a profitable company. Therefore, the layoffs are part of a larger strategy to streamline operations and reduce costs to help the company reach profitability.The restructuring of Vacasa is expected to impact commercial staff more than operations employees. Commercial department jobs are being consolidated into a single unit, while operations employees such as cleaners, caretakers and maintenance workers, who are in high demand, are less impacted by the job cuts. The restructuring of the commercial department is expected to improve productivity, efficiency and execution in sales. It will also help to reduce the company’s overall cost structure, making the company leaner and more agile.Furthermore, Vacasa stated that the layoffs impacted both local operations teams, as well as “central teams.” The former employee described Vacasa’s previous staffing as “bloated.” The layoffs are expected to help Vacasa eliminate unnecessary positions and make the company more efficient. The company’s goal is to become profitable in 2023 on an adjusted earnings before interest, taxes, depreciation, and amortization basis. To achieve this goal, Vacasa needs to optimize its operations and reduce its costs.Moreover, Vacasa’s priorities include adding vacation rentals for Vacasa to manage, expanding the company’s market position, and improving its software and operating platform. These are key priorities that the company needs to focus on to achieve its goals. The company’s new CEO, Rob Greyber, who became Vacasa CEO in September, has tried to tweak Vacasa’s strategy. He said in November that the company would downplay its longstanding practice of making acquisitions of regional or smaller vacation rental property managers in favor of organic growth, with the goal of making its sales team more productive. Greyber at that time also appointed a new chief commercial officer, and Greyber assumed the role of chief product officer, in addition to his CEO duties, on an interim basis.
Finally, the costs associated with the layoffs would be around $5 million, including some $4 million for severance pay and benefits, and $1 million for related costs. The costs would be incurred in both the first and second quarters, which could potentially impact the company's financial performance for the year. However, the layoffs are expected to help the company cut costs and streamline operations in the long run. In addition to reducing headcount, the company is also considering other cost-cutting measures, such as reducing non-essential expenses and optimizing its supply chain. By taking these steps, the company aims to improve its profitability and strengthen its position in the market.