Evolve Co-Founder and CEO, Brian Egan, shared the following message with our teammates following an all company meeting.
May 17, 2023
This morning I shared the difﬁcult news that we will be reducing the size of our team by 164 Evolvers (14% of the company).
Our values matter most in the hard times when we face our greatest challenges, and I will do my best to Communicate Often, Honestly, and Directly as I lay out why this is happening, our communication plan, my gratitude for our departing teammates, and our path forward.
Why this is happening
As we’ve discussed in our monthly Kickoffs over the past year, we are operating in a market that has become increasingly dynamic and volatile. Speciﬁcally, marketwide supply growth has considerably outpaced demand growth, which has led to average daily rates, bookings, and revenue per property coming in below our expectations.
This means we will be supporting fewer customers, and will generate less revenue than we planned heading into this year. As a result, we need to reduce the size of our team to align our organization and overall expense structure to this new market context.
Although we are in a strong position, with bookings and revenue per property well above pre-pandemic levels, robust property growth, and a healthy balance sheet, this difﬁcult decision is necessary to ensure that we stay committed to our longstanding ethos of durable growth.
Our communication plan
Within the next 10 minutes an email will go out to all Evolvers notifying you if your role has been impacted or not. For our departing teammates, that email will be sent to both your Evolve and personal emails. It will include comprehensive information on severance, health beneﬁts, and transition resources. In addition, you will be receiving outreach from a leader on your team before the end of the day, and you will have the option to schedule a 1:1 meeting with a People Business Partner.
This communication plan was designed to limit the amount of time anyone is left anxiously wondering whether their role has been impacted, allow this news to be absorbed privately, and ensure that all of our departing teammates have an opportunity to talk to our leaders directly. There are trade-offs to all communication approaches and I recognize that ours is imperfect. This plan reﬂects our best effort to live up to our value of Care, and to treat all our teammates, especially those who will be leaving, with the dignity and respect you all deserve.
Gratitude for our departing teammates
To the Evolvers we are saying goodbye to, I recognize and take full accountability for the profound impact that this will have on you and your families. I am deeply grateful for all the hard work, talent, and passion you brought to your role and to Evolve as a whole – thank you. It has been a privilege to be your teammate. Please know we are all committed to supporting you through this difﬁcult time and to helping you ﬁnd your next opportunity.
Our path forward
For our teammates who are staying, today is a hard day, and it’s a lot to process. I want you to know that I remain incredibly conﬁdent in, and energized by, our opportunity and the pursuit of our vision. As we move forward together, we will continue to narrow our focus on elevating the experiences of our Evolvers, owners, guests, partners, and all stakeholders by bringing hospitality to the forefront of everything we do. I will be leading an all hands meeting tomorrow to unpack that for you and detail our plans for the rest of 2023.
But all of that is for tomorrow. Today our collective focus should be on supporting our departing teammates and each other.