Sonder, the short-term rental and hotel company, announced a series of moves to cut expenses and increase cash as it anticipates the integration of its properties with Marriott digital channels by the end of June.
Sonder said it plans on making $50 million in annualized cost reductions from headcount cuts, “software savings and other efficiencies in conjunction with the Marriott integration.”
Sonder’s announcement did not detail the number of expected layoffs.
To raise cash, Sonder said it sold $18 million in Series A preferred shares and that it received $7.5 million key money on Friday from Marriott as part of the 20-year licensing deal announced in August. Sonder listings on Marriott.com will by marketed as Sonder by Marriott.
Sonder it said it amended its note and warrant purchase agreement, trimming the interest rate by 50% and reducing the outstanding principal balance by 15%.
