In an announcement Thursday, Expedia (NASDAQ:EXPE) announced a $3.2 billion lifeline designed to help the online travel company survive the COVID-19 pandemic. 

The $3.2 billion in fresh capital will consist of a $1.2 billion investment by private equity firms Apollo Global Management and Silver Lake and $2 billion in new debt financing. The two PE firms will get non-voting, non-convertible preferred stock and seats on the board.

Two people walking through an empty airport with luggage wearing face masks.

IMAGE SOURCE: GETTY IMAGES.

Expedia is also suspending its dividend until business improves. In addition, its chairman, CEO, and board members will forgo cash compensation for the rest of 2020. Senior executives will see a 25% reduction in their salary. The tech stock is also furloughing an undisclosed number of employees. However, the company did vow to continue paying employee healthcare benefits. Its 401(k) match program for U.S. employees will also be suspended for the rest of the year.

"We have one mandate – to conserve cash, survive, and use this time to reconstruct a stronger enterprise to serve the future of travel," Barry Diller, chairman of Expedia said in a press release. "We are unable to make any predictions as to when travel will rebound but we emphatically believe that it will, for....'if there's life, there's travel.'" With travel coming to a halt as millions of people shelter in place around the world, the travel industry has been taking a big beating. Expedia isn't an exception

In addition to announcing the capital infusion, Expedia named Peter Kern, a board member since 2005 and vice chairman since 2018, as its new CEO. Kern has been running the online travel company with chairman Barry Diller since CEO Mark Okerstrom left in December. Eric Hart, an executive at Expedia for more than a decade was named CFO.