News – Booking.com announced big layoffs

That the economic situation in the world is still very difficult is shown by the news how Booking.com plans to lay off approximately 4,500 employees. The company said it would have to lay off 25% of the total workforce (17,500) as part of a major restructuring. Details on which functions the cuts will be made will be worked out after talks with the unions. The company’s statement states that the Covid-19 crisis “devastated the passenger industry”, and that reservations are still “significantly reduced”.

“Although we have done a lot to preserve as many positions as possible, we need to restructure our organization if we want it to meet our expectations about the future of travel.”

Co-founder of Airbnb on travel

The latest steps

Owner of the Booking.com platform Booking Holdings (also held by Agode, Priceline, Kayak, OpenTable, Momondo, etc.) operates in 65 countries around the world and currently has 26,000 employees. The cost savings on Booking.com come three months after the group stopped buying shares and froze employment. This is dramatic reduced marketing spending in the first quarter. It was $ 851 million compared to $ 1.2 billion a year earlier. The company conducted a “strategic assessment” of sister brands Kayak and OpenTable in May, leading to layoffs which reduced the cost of these particular brands by about 20%. The company said at the time that even before the announced external financing, it believed that if the existing business volume remained the same, it would be able to “meet operational and other needs at least until the end of 2021.”

New cases of infection in Asia

Earnings in the first quarter of 2020 on Booking Holdings (publishing figures for the second quarter later this week) did not clearly reflect the seriousness of the COVID-19 crisis, said then-CEO Glenn Fogel. Gross travel provisions fell to $ 12.4 billion for the period January – March 2020. This is still a huge number, but also an incredible 51% less than a year earlier ($ 25.4 billion). A large part of the loss came in the category of reserved overnight stays, which were 43% lower in the first quarter than in the first quarter.

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Source: Travel Magazine by www.travelmagazine.rs.

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