There may very well be a clear bull-case argument for Airbnb being successful long term, but at the moment that's not really the point.
Any long term employees who have been around long enough to even have the decision to make regarding exercising options (from other comments it appears that Airbnb switched to RSUs at some point), would be facing a massive tax liability this year.
It is clear that there will be some debate and uncertainty around a fair-market-value for Airbnb shares in light of COVID, but AFAIK any capital gains, and therefore tax liability, will be based on their most recent funding rounds (which were obviously based in the pre-COVID world)
It would be interesting to know the fair market value of their next 409A valuation compared to the previous one. The reduced FMV could shift the equation and help those laid off employees exercise at least a portion of their shares when otherwise they would be unable to responsibly do so. Oh, and it would reduce taxes on vesting RSUs for remaining employees too. The worst hit may be those that receive RSUs or exercise options before the write-down, huh? Airbnb should hurry then...
Any long term employees who have been around long enough to even have the decision to make regarding exercising options (from other comments it appears that Airbnb switched to RSUs at some point), would be facing a massive tax liability this year.
It is clear that there will be some debate and uncertainty around a fair-market-value for Airbnb shares in light of COVID, but AFAIK any capital gains, and therefore tax liability, will be based on their most recent funding rounds (which were obviously based in the pre-COVID world)
Edit: typo-d a word