plans to cut about 120 to 150 jobs in its product and system delivery group, and the company lowered its earnings forecast for the second quarter.
The company expects to record charges in the range of $2.5 million to $5 million during the rest of the year for the job reductions.
Sabre made the announcement in a filing with the
Securities and Exchange Commission
. For the second quarter, the company expects to report Sabre Travel Network transaction growth of 5% to 7% above last year, which is slightly below the growth rate assumed in the previous earnings guidance. As a result of the revision and the severance charges, the company anticipates adjusted second-quarter earnings of 39 cents to 42 cents a share.
The prior estimate was a range of 43 cents to 48 cents a share on an adjusted basis. Travelocity's transactions booked in the second quarter have been strong to date, and the company says its financial results remain within its previous forecast.
Sabre's adjusted earnings guidance of $1.50 to $1.60 for the full year wasn't changed.
The Thomson First Call consensus forecast is for Sabre to earn 46 cents in the second quarter and $1.55 for the year.