Just days after securing a $4 billion loan, the chief executive of Booking.com has told the employees that layoffs in the coming months are “probable.”
Established in the Netherlands in 1996 but American owned since 2005, Booking.com is a travel metasearch engine for lodging reservations. According to their website, they have over 28 million listings.
But in the days of coronavirus (or, to use the term I like better, coronacrapola), their bookings are down 85% in comparison to last year. No surprise there.
They’ve already committed to stop nearly all marketing and plan to cut executives’ salaries (that wouldn’t be a bad thing. According to the Works Council, Booking.com’s chief executive earned about $20 million in 2018, which was more than four hundred times as much as the company’s average employee). The company has also put out a hiring freeze that included not keeping the 50 or so employees that were on probation at their head office. But more cuts are necessary.
During a video conference, the company’s chief executive, Glenn Fogel, told about 350 of their 5,000+ employees that more cuts would be be “tailored to different parts of the company.” When asked during the call if there would be lay-offs, he said “probably yes.”
Last week, Booking.com was able to secure $4 billion in bonds that would be due between 2025 and 2030. The proceeds would be used for “general corporate purposes.”
According to the Financial Times, an investment bank analyst has estimated Booking.com now has roughly $8.5 billion in cash (about 4x what Airbnb and Expedia have) to see it through the corona crisis. However, according to Dutch newspaper NRC (translation of home page), the company had about $7.6 billion in debt at the end of 2019.
As per Financial Times, Booking.com reportedly was “looking at all options and doing everything we can to protect employees.”
*** Feature photo (cropped): Travelarz/wikimedia
#stayhealthy #stayathome #washyourhands
Like this post? Please share it! We have plenty more just like it and would love it if you decided to hang around and get emailed notifications of when we post. Or maybe you’d like to join our Facebook group – we have 12,000+ members and we talk and ask questions about travel (including Disney parks), creative ways to earn frequent flyer miles and hotel points, how to save money on or for your trips, get access to travel articles you may not see otherwise, etc. Whether you’ve read our posts before or this is the first time you’re stopping by, we’re really glad you’re here and hope you come back to visit again!
This post first appeared on Your Mileage May Vary