Two-thirds of the layoffs will be in the U.S. and Canada, and the rest will come overseas, the company said.
In a letter to employees, TripAdvisor CEO Steve Kaufer called it “tough news about steps we are taking as a company to seek significant cost savings that will help TripAdvisor get to the other side of the Covid-19 pandemic.”
While the company’s workers have tried hard to persevere through the 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,” he said.
In most markets, the company will implement temporary pay reductions for remaining salaried employees and a reduced work schedule for the summer months.
Morningstar analyst Dan Wasiolek sees a bright outlook for TripAdvisor after the coronavirus pandemic wears down.
“Despite intense competition and material near-term Covid-19 headwinds, we expect TripAdvisor’s network advantage (source of its narrow moat) to remain in place over the next decade” he wrote in a report last month.
The advantage is “supported by a solid global position, continued rise in industry online penetration, and investment into experiences and restaurants.”
TripAdvisor shares recently traded at $18.86, up 0.85%. The stock has dropped 35% over the last three months.
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