The reorganization announced includes shuttering and consolidating some brands, as well as management changes. Steve Kaufer, CEO of Tripadvisor informed employees that the company will be reducing its global workforce by 25 percent around July.
The number of layoffs is more than 900, Tripadvisor confirmed. The company had nearly 4,200 employees at the end of 2019 but had already done a round of layoffs of some 200 employees in 2020. Most remaining employees are subject to 4-day work weeks, and a 20 percent pay cut, while Steve Kaufer announced he will forgo his salary for the rest of the year (nearly $800,000 in base pay in 2018 plus incentive-based compensation that brought his pay close to $2 million).
As part of the restructuring, Tripadvisor is closing offices in downtown Boston and San Francisco.
"Tripadvisor firmly believe these measures are necessary and proportionate to the reality we face as a business and as an industry," the company said in a statement.
The Tripadvisor flights, car, and cruise teams will now be grouped under the business-to-consumer team. It will also discontinuing its SmarterTravel business unit.
"This is a tough day on many levels, and the pandemic has been nothing short of surreal," Steve Kaufer told employees. "With difficult decisions to make, the executive team and I firmly believe these actions appropriately balance our short-term financial needs with our long-term business objectives, but I know that reality offers little solace for those impacted by this news today."
Note that Booking Holdings is considering layoffs too.
Already signed up? Already signed up? Already signed up? Already registered? Login here!