Airbnb has suspended all its marketing activities amidst numerous cancellations over the COVID-19 global pandemic. The move seeks to save the company $800 million throughout this year, as they struggle to remain afloat.
Additionally, the company’s founders, Brian Chesky, Joe Gebbia and Nathan Blecharczyk, will go without salary for the next six months, with other top executives taking a 50% pay cut.
According to Airbnb Chief Executive Officer, Brian Chesky, the company will also pay hosts $250 million as a relief for all COVID-19-related cancellations for two and a half months. This applies to reservations made on or before 14th March 2020.
Furthermore, the company is also in talks with banks to extend an existing $1 billion financing.
Airbnb is an online marketplace for arranging or offering lodging or tourism experiences. Although the company does not own any of the real estate listings, it acts as a broker, receiving commissions from each booking. The company is based in San Francisco, California, United States.
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