Airbnb suspends marketing to save $800 million, top executives take pay cut: source

FILE PHOTO: The Airbnb logo is seen on a little mini pyramid under the glass Pyramid of the Louvre museum in Paris, France, March 12, 2019. .REUTERS/Charles Platiau/File Photo

(Reuters) - 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.

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.

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.

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