On Tuesday morning, the CEO of Tripadvisor, Steve Kaufer announced that the company is reducing its global labor force by 25 percent, including 600 U.S. employees.
According to Tripadvisor data, the worldwide layoffs were more than 900, counting the U.S, job cut as well. Being a part of the rolling process, employees were informed that the selection for job cut will be done according to the resources.
4200 global employees were working with Tripadvisor at the end of 2019, but according to the recent data, the layoff of 200 employees is already done in January. The company, Trip advisor is headquartered in Needham, Massachusetts, and has 52 offices. In the restructuring process, the company is closing the offices in San Francisco and downtown Boston or maybe some other office globally. The remaining employee will work 4 days a week and 20 percent pay cut.
As per the company statement, “Tripadvisor firmly believes these measures are necessary and proportionate to the reality we face as a business and as an industry’’.
Kaufer announced that under the reorganization process the brand will merge or shutter, as well as management, will also change. The Tripadvisor car, flights and cruise teams will be merging under the business-to-consumer team and will be supervised by the chief experience and brand officer, Lindsay Nelson.
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The independent business, Cruise Critic is under the purview of chief financial officer Ernst Teunissen.
The SmarterTravel business unit by Trip advisor will be is discounted, and Tripadvisor will decide which brands will endure under Nelson’s leadership. The additional responsibilities of guiding a united advertising sales team will be done by Kanika Soni, Chief Commercial Officer. Soni is also a new merger head of Tripadvisor’s business-to-business accommodations and restaurant teams.
Nelson and Soni are two new members of Tripadvisor’s executive officer contingent. After the reorganization, the company has two women and three men as their executive officers. In his speech, the Kaufer told employees that ‘This is a tough day on many levels, and the pandemic has been nothing short of surreal’
“With difficult decisions to make, the executive team and I firmly believe these actions appropriately balance our short-term financial needs with our long-term business objectives, but I know that reality offers little solace for those impacted by this news today.”