According to the company’s announcement, after summarizing the final details of the layoff plan, employees from all countries will be updated starting in September. Booking Holdings is the parent company of other tourist sites, including Kayak and Priceline, but the layoffs only concern Booking.com employees.
“Deep down I had hoped for a long time that this would not happen,” company CEO Glenn Fogel said in a message to employees. “Since the beginning we have worked hard to protect jobs. However, there is nothing that can soften the impact of this crisis that will continue to hurt our travel industry and business. ”
The travel and vacation industry is suffering from sharp declines in revenues due to the continued spread of the corona, and it is estimated that it will be some time before activity returns to pre-crisis levels. For example, Booking reported a 51% drop in bookings in the first quarter of the year. Today (Thursday) the company will publish the results of the second quarter.
“The Corona crisis has devastated the travel industry, and we continue to feel the consequences while travel volumes have been significantly reduced,” a company spokeswoman told CNBC. “We did our best to keep as many jobs as possible, but we believe we need to reorganize so that we can meet our expectations regarding the future of the travel world.”
Booking thus joins other companies in the field that have recently announced rounds of layoffs. On Tripadvisor, for example, a quarter of the workforce – which is over 900 employees – was cut in April, and on Airbnb, 1,900 employees were laid off, representing 25% of all employees.