Coronavirus prompts Airbnb to stop marketing, execs take 50% pay cut

Get all the latest news on coronavirus and more delivered daily to your inbox.  Sign up here.

Airbnb Inc has suspended all its marketing activities to save $800 million this year, and its founders will take no salary for the next six months while top executives will take a 50% cut, according to a person familiar with the matter.

The home rental start-up has also paused hiring, with the exception of a very small number of critical roles, the source said.

Many U.S. companies have been rushing to borrow more money and boost their cash coffers as the fallout from the coronavirus pandemic threatens a prolonged downturn.

GOOGLE PROMISES $800M IN CORONAVIRUS AID TO SMALL BUSINESSES, OTHER GROUPS 

Airbnb held a phone meeting with bankers on Wednesday to discuss extending an existing $1 billion debt facility as it grapples with a slowdown due to the coronavirus, Reuters had reported.

Airbnb has also informed employees that it is unlikely for them to receive a bonus in 2020, according to the source.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Earlier on Friday, The Information reported that when asked about layoffs, Chief Executive Officer Brian Chesky told employees on Thursday that nothing is off the table.

“Airbnb is resilient and built to withstand tough times and we’re doing all we can to strengthen our community and our company,” the company said in an email to Reuters, without elaborating.

CLICK HERE TO READ MORE ON FOX BUSINESS

Reporting by Joshua Franklin in New York and Munsif Vengattil in Bengaluru; Editing by Maju Samuel