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Airbnb Restructures to Grow Business Beyond Home Rentals

As Airbnb has diversified into new businesses like luxury home rentals and travel tours, the company’s organizational structure has begun to show the strain, say current and former employees. Reporting chains seemed muddled while information flowed slowly across product teams. CEO Brian Chesky turned to executives from Apple, Facebook, Google and Amazon for advice on how to better organize the company.

Those conversations led to a shake-up inside Airbnb in recent weeks. The company gave more decision-making power to its groups developing its newer businesses in China, luxury homes and other travel tours and experiences. While these businesses only generate a small portion of revenue, they’re increasingly important to the company’s growth hopes. One big inspiration for Mr. Chesky was Amazon, which gives teams focused on different business verticals separate reporting chains, say people who have spoken with him.

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Teams focused on building out Airbnb’s slate of tours and experiences couldn’t launch new features quickly while it reported into the short-term rentals group.