Airbnb Has Had to Do This Because of the Coronavirus

Lodging online marketplace Airbnb has seen a big impact due to the COVID-19 outbreak.

According to a CNBC report citing a person familiar with the situation, the company will have to institute a hiring freeze and suspend its marketing as it adjusts to the impact of the coronavirus pandemic on its business.

The source also told CNBC’s Deirdre Bosa that Airbnb’s founders will be taking on no salary and its executives will take a 50% salary reduction for the next six months. Employees will also not likely see a 2020 bonus.

The Information previously reported the news this past Friday.

Prior to the coronavirus outbreak, Airbnb had been getting ready for its IPO. The company had already lined up bankers to lead the offering. The Wall Street Journal reported back in February that Airbnb lost $322 million over the first nine months of last year, after reporting a $200 million profit in 2018.

According to the U.S. Travel Association, the travel industry is projected to lose 4.6 million jobs this year.

Airbnb wrote in a blog post on Monday, “We’ve worked hard to find solutions that will lessen the impact on our community. On Monday, we announced several key initiatives and policies, including $250 million USD to help accommodation hosts impacted by COVID-19-related cancellations.”

It added, “We know a lot of people are facing serious hardships right now, and we’re working around the clock to help you. Our $250 million USD support will come entirely from Airbnb at no cost to the guest, and we hope you’ll accept it as a show of commitment to our hosts.”