Zipcar, the Boston-based car-sharing company, has laid off nearly 20 percent of its workforce as businesses—especially those in the travel industry—are disrupted by COVID-19, the respiratory illness caused by the novel coronavirus.
Founded in 2000 and acquired by Avis Budget Group in 2013, Zipcar employed about 500 people in North America including 300 in Greater Boston as of February 2017, according to the Boston Globe. Zipcar declined to give specifics on how many people were let go. The company also did not specify which departments had made cuts but said that roles across nearly every location and function were impacted.
In a statement emailed to BostInno, Justin Holmes, Zipcar's director of corporate communications, public policy and partnerships, said "the COVID-19 situation" had directly impacted Zipcar's decision to make layoffs.
"We have made some very difficult short-term decisions in response to these unprecedented circumstances, including a reduction in our current workforce," Holmes said. "While our company is not alone in facing challenges from this public health crisis, these decisions are extremely difficult."
Boston startups have already been roiled by the economic impacts of COVID-19. Last week, corporate travel startup Lola.com laid off nearly one-third of its workforce. On Thursday, Wanderu, which aggregates intercity bus and train information, told Fortune it has put a third of its 40 or so employees on unpaid leave. The news comes as the nation's economy teeters on the edge of a recession: A record-shattering 3.3 million Americans filed for unemployment last week. Nearly 150,000 of those were Massachusetts residents.
Zipcar said in a statement on Tuesday that in response to coronavirus, the company had upgraded its car-cleaning with antiviral and antimicrobial solutions and waived cancellation fees through April 30. Meanwhile, Holmes said, Zipcar will continue to operate in all its major markets. The company currently operates in more than 500 cities and towns.
"While we expect the next several months to be difficult for many businesses worldwide, we believe Zipcar will emerge more important than ever: we are a more affordable option than car ownership, and in times of crisis, we are an essential service that helps members get to where they need to go," Holmes said.
