TripAdvisor expected to slash staff as the coronavirus stalls travel


An airline pilot walks in front of a Tripadvisor store in Toronto Pearson airport. (Photo by Geovien So/SOPA Images/LightRocket via Getty Images)

Geovien So | SOPA Images | LightRocket via Getty Images

TripAdvisor is reportedly laying off more staff as the coronavirus pandemic continues to take a toll on the travel industry. 

It’s the latest indication of how the crisis is changing habits and impacting the workforce. It’s unclear what the scope of the layoffs will be, but travel trade publication Skift reported that they would affect 25% of TripAdvisor’s global workforce, including 600 U.S. employees. The total layoffs could be around 1,000, Skift reported, citing sources. The company has about 4,200 employees according to corporate filings.

A TripAdvisor spokesperson would not confirm the report, but said an announcement is coming from the company around noon Eastern.

TripAdvisor previously let go 200 employees, CNBC reported in January. Those cuts represented about 5% of TripAdvisor’s workforce at the time and mostly affected its experiences division, which works on travel activity offerings.

TripAdvisor CEO Stephen Kaufer said at the end of March he would forego his salary for the rest of the year. Kaufer made nearly $800,000 in base pay in 2018 plus incentive-based compensation that brought his pay close to $2 million, according to the company’s most recently available financial statements.

Prior to the pandemic, TripAdvisor faced headwinds from Google’s entrance into the travel search market. Executives at both TripAdvisor and Expedia pointed to lower visibility on Google to help explain their third-quarter earnings misses. 

Seema Mody contributed to this report.

Subscribe to CNBC on YouTube.


Source link