TripAdvisor to lay off 200 workers, reinvest the money elsewhere
The cuts represent 5% of workers
Travel firm TripAdvisor will cut its staff by 200 workers.
The pending layoffs were first reported by Bloomberg and represent 5 percent of the brand’s workforce. A TripAdvisor spokesperson confirmed the job cuts to FOX Business.
While the company did not provide more specific details about the move, it confirmed to travel website Skift that it plans to reduce expenses and reinvest in other arms of its business, like media and advertising, restaurant and hotel, and membership initiatives.
As for potential targets of the cut, TripAdvisor’s Experiences and Dining segment, which saw a third-quarter revenue jump of 19 percent to $141 million, could be first in line, per Skift. While revenue saw a substantial uptick, earnings dropped 46 percent to 15 million.
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TRIP | TRIPADVISOR INC. | 25.56 | +0.52 | +2.08% |
One reason: increased competition in the category. Big newcomers like Airbnb’s Experiences and Booking.com could split the market into smaller parts. And already established brands, like Europe’s GetYourGuide and Hong Kong’s Klook, have raised lots of funding for themselves, more than $654 million and $520 million to date, respectively.
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TripAdvisor’s TV advertising segment could also be on the hook to get trimmed, as the company looks to moves ads across newer and more effective media vehicles.
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During a Nov. 7 earnings call, the company’s chief financial officer, Ernst Teunissen, said it would aim to cut somewhere between $80 million out of its annual run rate.
TripAdvisor’s stock dropped 3 percent in the past week and nearly 50 percent on the year.