Airbnb is looking to pause its marketing campaigns as a way to save $800 million while the company’s executives slash half of their salaries, Reuters reported on Friday (March 27), citing sources.
In addition, Airbnb founders will forego salaries for the next six months, a person familiar with the matter told Reuters. New hires are also on hold, “with the exception of a very small number of critical roles,” the source said.
“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 told Reuters.
Airbnb on Wednesday (March 25) spoke to its bankers via phone to see if it could further its existing $1 billion debt facility as the coronavirus pandemic spreads and stifles business, Reuters had reported.
Airbnb told employees that a 2020 bonus is unlikely, the source told Reuters.
The company’s chief executive officer, Brian Chesky, told employees on Thursday that “nothing is off the table.”
“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,” the article said.
Airbnb said that it’s going to provide free or subsidized housing for coronavirus responders, according to a blog post by the company.
The company has a goal of helping around 100,000 workers, and it will waive all fees associated with a stay.
“Medical workers and first responders are providing life-saving support during the coronavirus outbreak, and we want to help,” says Airbnb’s co-founder Joe Gebbia. “We’ve heard from countless hosts around the world who want to provide a comforting home to heroic first responders.”
Examples of safe hosting recommendations include listing entire homes and agreeing to a number of safety requirements including enhanced cleaning, social distancing with their guests and allowing 72 hours between stays. Airbnb’s partners or affiliates will ensure that stays are COVID-19 related and responders are familiar with safety protocols.