Travel review website Tripadvisor recently announced a workforce reduction that will impact more than 900 employees, due to the effects of the coronavirus pandemic on its business.
The job impacts across Tripadvisor’s global workforce includes the elimination of the roles of more than 600 employees in the United States and Canada; and nearly 300 staff members outside the US. The number of employees losing their jobs is approximately one-quarter of Tripadvisor’s total workforce.
According to Tripadvisor CEO and Co-founder, Steve Kaufer, the company took the decision in search of significant cost savings that would help Tripadvisor “get to the other side” of the Covid-19 pandemic.
“…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,” Kaufer said in a statement.
Tripadvisor’s staff reduction is the last action of a three-phased plan launched to navigate near-term challenges and position its business for recovery from Covid-19, which included cutting nearly all but the most essential discretionary spending and taking advantage of government subsidy programs in Europe that allowed it to swiftly furlough hundreds of employees.
“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,” Kaufer said, announcing the plan’s “Phase 3”, which includeda significant workforce reduction and additional Tripadvisor employee furloughs.
Tripadvisor’s CEO added that in most markets, the company will ask most of its salaried employees to move to a 4-day work week and take a corresponding 20 percent reduction in base salary, for three months starting in June.
In the United States, Tripadvisor will also be closing both the San Francisco and downtown Boston office building locations permanently, allowing remaining employees in those offices to continue working virtually, or, in the case of Boston, work out of its Needham Headquarters.
“As CEO, you plan for the best and worst case outcomes that could affect our business. Unfortunately, there is no playbook for this moment that we’re in together right now… I never fathomed the industry I love — travel — having so many hotels at near 100 percent vacancy, planes grounded, and restaurants empty,” Kaufer said.