On the heels of Booking.com reporting they will probably have massive layoffs, TripAdvisor has announced they are going to have to cut 25% of its workforce and force 20% pay cuts of those who remain.
TripAdvisor is the world’s largest travel platform. They operate a website and mobile app with user-generated content, a comparison-shopping website, and offer online hotel reservations as well as bookings for transportation, lodging, travel experiences, and restaurants.
Headquartered in Needham, MA, they have 37 office locations across 16 countries. The company was enjoying an average of 490 million monthly active viewers and annual revenue of $1.6 billion.
But, of course, coronavirus put a near-end to all that.
So they’re eliminating 900 positions or about 25% of their workforce. 600 of the cut positions will be from those in various U.S. offices, and another 300 will be from other offices around the world. The company is closing its offices in San Francisco and Boston entirely.
Most remaining employees will be forced to accept a 20% pay cut and their workweeks will be cut to 4 days per week for three months, effective June 1st.
Chief Executive Officer Steve Kaufer wrote in an email to staff: “These are the most difficult cost-saving decisions I have ever had to make. This is a tough day on many levels, and this pandemic has been nothing short of surreal.”
Kaufer suggested that the full impact of the Covid-19 pandemic was yet to be laid bare. However, he also said, “I am confident that our business and the industry will recover.”
Kaufer had already said he would forgo his salary for 2020.
Feature photo: Travelarz
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This post first appeared on Your Mileage May Vary
1 comment
I run a tour company, and TripAdvisor has been trying to get as much money out of me as possible for years and making my life harder. I have no problem with legitimate rating systems but when they push some companies higher because they paid TripAdvisor more, that defeats the purpose.
I feel bad for the employees losing their jobs, but I am absolutely gleeful that the company is suffering. Now they get to see how it feels a bit!