- Airbnb freezes hiring and suspends marketing to combat Coronavirus pandemic.
- The company's executives to receive only 50% of their salaries in the next 6 months.
- Coronavirus continues to sabotage Airbnb's plans of initial public offering in 2020.
In its statement on Friday, Airbnb said that it plans on postponing its scheduled hiring amidst the widespread Coronavirus crisis. The company also said that it will temporarily halt its marketing campaign to adjust to the imminent economic blow of the flu-like virus.
As per Airbnb, its founders will not be receiving salaries in the next 6 months while the rest of the executives will only be paid 50% of their salaries during this time to cut costs and sustain the financial stature of the company.
Airbnb Employees Are Unlikely To Receive Yearly Bonus
As per the sources, Airbnb employees are also unlikely to receive their yearly bonus. With an exemption of a few critical positions, delaying the hiring, the source added, will affect almost all departments of the tourism company.
Before the health crisis hit, Airbnb was expected to be the blockbuster of tech IPOs in 2020. The company had already arranged a list of bankers to lead its IPO. Airbnb was also estimated to live up to a private market valuation of £24.89 billion from 2017. In 2018, the company had recorded around £160 million in profit after which it sunk sharply in the first 9 months of 2019 reporting £258 million worth of loss.
The Coronavirus pandemic has hit the global travel industry the hardest with widespread restrictions that are pushing the tourism company into offering refunds to its guests as they continue to cancel their bookings. The U.S Travel Association forecasts a loss of 4.6 million jobs in 2020 in the travel industry. Such an economic blow is also expected to reflect in Airbnb’s financial performance this year.
Airbnb To Offer Housing To 100,000 Healthcare Workers
According to Johns Hopkins University, the number of infected has gone above 600,000 across the globe with the death count currently above 27,500. The United States overtook other massively hit countries like Italy and China on Friday as the confirmed Coronavirus cases in the U.S topped 100,000 marking currently the highest in the world.
In separate news, Airbnb also announced recently that it plans on subsidizing housing for as many as 100,000 healthcare workers that are responding to the COVID-19 crisis.