Tripadvisor cuts 25% of workforce due to the pandemic

By BigHospitality

- Last updated on GMT

Related tags: Coronavirus, Restaurant, Hotel, Public house, Tripadvisor

Tripadvisor has cut 900 jobs - equating to a quarter of it total workforce - due to the effects of the Coronvirus pandemic on its business.

The jobs come from across Tripadvisor’s global workforce, with around 600 redundancies in the US and Canada and around 300 staff members from outside of these countries. A number of Tripadvisor employees have also been put on furlough, although the company says it hope they will be able to return to work later this year.

Tripadvisor CEO and co-founder Steve Kaufer informed staff about the redundancies in a public letter, saying that he hoped other companies would consider them for open roles and “so they might understand our rationale as they struggle with these tough decisions as well”.

In most markets, the company is also asking for the majority of its remaining salaried employees to take both a temporary pay reduction and also to work a reduced schedule for the summer months. It says it will reduce its global real estate footprint, which currently includes 52 offices around the world.

“Everyone’s lives have been upended by this virus, and I continue to be profoundly humbled by and, at the same time, so proud to see everyone in this company rising to the occasion,” Kaufer wrote. “I’ve been in awe, watching you all work day and night to ensure travellers and our travel partners receive the high level of service expected of our brand as teams remain virtually connected and productive.”

“But sometimes, the most valiant of efforts aren’t enough to counter outside circumstances and, as a public company, it is our responsibility to adjust, adapt and evolve to the environment that surrounds us.”

“I never fathomed the industry I love — travel — having so many hotels at near 100% vacancy, planes grounded, and restaurants empty.”

Tripadvisor had previously introduced a first phase of measures where it cut nearly all but the most essential discretionary spending, effectively ending all business travel, ending non-essential vendor relationships, pausing nearly all hiring and significantly reducing office perks and benefits. Kaufer has also declined a salary for the remainder of 2020.

A second phase of measures was later brought in where the company took advantage of government subsidy programs across Europe, furloughing hundreds of employees, a move it says has helped it to preserve needed operating capital. However, it has recognised that the measures alone have not been enough to safeguard the future of the business.

“We had hoped cutting discretionary expenses and furloughs would be enough, but as the pandemic worsened, it became clear that the company needed to take additional cost saving measures,” says Kaufer.

Related topics: Business

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